Mr. Echo is happily married with three children. Together, Mr. and Mrs. Echo earn $80,000 and their familys annual expenses are $77,000. He is a music teacher who just started a new teaching job at the local elementary school in his neighborhood. During recess, when the teachers arent gossiping about the students and complaining about the administration, they sit around and discuss the investments theyve made and are planning to make.

When they ask Mr. Echo what his investment portfolio looks like, he embarrassingly admits that he doesnt have one. All at once, the teachers jump in and try to advise him how to put together a portfolio and what it should look like.

The biology teacher, Mr. Organ, begins with saying: Go for the S&P 500. Thats the best place to start. You can buy the SPY ETF and its like you are buying the whole market.

MULTIPLE CHOICE

1. What is the Exchange Traded Fund with the trading symbol SPY?

A. An ETF that tracks the entire stock market

B. An ETF that tracks the S&P 500 Index

C. An ETF that tries to outperform the S&P 500 Index

D. An ETF thats only for beginner investors

2. What is an Exchange Traded Fund (ETF)?

A. A type of fund that trades on an exchange, and contains assets like stocks, bonds, or other securities

B. A type of mutual fund that only holds very liquid assets which can be easily traded on an exchange

C. A type of mutual fund that purchases stocks and exchanges them for bonds

D. A type of fund that can be exchanged (i.e., traded) for another fund for no or very low cost

3. What is the S&P 500 Index?

A. Standard & Poors list of the 500 companies with the highest growth potential in the stock exchange

B. Standard & Poors list of the 500 riskiest companies in the stock exchange

C. Standard & Poors list of the 500 stocks with the highest dividend yield

D. Standard & Poors list of 500 large companies

4. What beta will the S&P 500 fund have?

A. Bigger than 1

B. Smaller than 1

C. 1

D. It constantly changes so there's no way to know.

I UNDERSTAND THAT WE ARE NOT ALLOWED TO POST MULTIPLE QUESTIONS BUT I AM REALLY STRUGGLING IN THIS ONLINE CLASS AND I REALLY NEED HELP. I ALWAYS EMAIL MY PROFESSOR BUT SHE DOESN'T EVEN LIVE IN THE UNITED STATES, SO I ALWAYS GET REPLIES AROUND 1-5 AM, BUT THAT IS WHEN I AM ASLEEP AND CAN'T REPLY.