1) The host of this video, Ellie Ismaildou, indicates that there are three types of assets: stocks, bonds, and cash. Which of these assets indicates partial ownership of a corporation?

a

Cash

b

Bonds and stocks

c

Stocks

d

Bonds

2) This video makes the important point that people should adjust their investments over the course of their lifetime, adjusting their investment mix to match their tolerance for risk and their time horizon. The term _______ refers to the relative amount of funds invested in each of the investment alternatives (cash, bonds, and stocks).

a

diversification

b

market indexing

c

equity financing

d

asset allocation

3) Of the different types of assets discussed in this video, which one is issued with terms and conditions spelled out in an indenture, has a face value, and is repaid on a maturity date?

a

Preferred stock

b

Common stock

c

Cash

d

Bond

4) As the video notes, stocks have shown a consistent growth in value over longer periods of time. The fact that $1 invested today can be worth $15 thirty years from now illustrates the _____.

a

time value of money

b

existence of a bull market

c

importance of insider trading

d

concept of book value

5) All of the assets discussed in this video have different rates of return and different levels of ______.

a

presence on the Dow Jones Industrial Index

b

risk

c

market capitalization

d

book-entry ownership