Toggle sidebar menu
Learn Economics
Teach High School
Teach University
About Us
We're Hiring
Donate
Student Account
Educator Account
Contact Us
Join Our Community of Econ Nerds
Follow us
Learn Economics
Search
Courses
See all
Principles of Economics: Microeconomics
Principles of Economics: Macroeconomics
Mastering Econometrics
Money Skills
Development Economics
Series
See all
Everyday Economics
Nobel Conversations
Economists in the Wild
Women in Economics
Econ Duel
Interactive Practice
See all
Supply and Demand
GDP
Trade
Inflation
Teach Economics
The Best Econ News Articles
Find the perfect article to explain any econ concept—or sign up for weekly email updates!
Learn More
Free High School Teacher Trainings
Teaching techniques, resources, and professional development credit! Everything you need to make economics fun and engaging for your students.
Learn More
Learn about our mission
High School Teaching Resources
See all
By Course:
High School Economics
AP Microeconomics
AP Macroeconomics
Personal Finance
By Type:
Unit Plans
Lesson Plans
Interactive Practice
Assessments
University Teaching Resources
See all
By Course:
Principles of Microeconomics
Principles of Macroeconomics
Mastering Econometrics
Development Economics
By Type:
Assessments
Interactive Practice
Lesson Plans
Assignments
Donate
Student
Educator
Toggle mobile search form
Search
Practice Questions
Investing: Why You Should Diversify Practice Questions
1. There are three stocks available: a solar energy firm, an oil firm, and an airline. You can invest in two. Which two? (Hint: think about the rule of diversification.)
*
a. solar energy firm and oil firm
b. solar energy and airline firm
c. oil firm and airline firm
2. Which of the following would be the least risky thing for you to do if you work as a real estate agent?
*
a. Invest in construction companies.
b. Buy a house.
c. Marry a doctor.
d. Buy mortgage-backed securities.
e. a and b only.
3. Let’s assume that your mutual fund grows at an average rate of 7% per year—before subtracting the fees. Using the
rule of 70
: Approximately how many years will it take for your money to double if fees are 0.5% per year?
*
a. 8.1 years
b. 9.3 years
c. 10 years
d. 10.8 years
e. 11.2 years
4. Using the same assumption as question 3, and the rule of 70: Approximately how many years will it take for your money to double if fees are 1.5% per year (not uncommon in the mutual fund industry)?
*
a. 8.2 years
b. 9.5 years
c. 10 years
d. 11.4 years
e. 12.7 years
5. Using the same assumption as question 3, and the rule of 70: Approximately how many years to double if fees are 2.5% per year?
*
a. 7.4 years
b. 11.5 years
c. 13. 5 years
d. 15.5 years
e. 16.3 years
Submit
Skip to Next Lesson
Back to video
Submit
Money Skills
Course
(10 videos)
Investing
How Expert Are Expert Stock Pickers?
Practice Questions
Can You Beat the Market?
Practice Questions
Investing: Why You Should Diversify
Practice Questions
Who Is More Rational? You or the Market?
Practice Questions
Real Estate
(Coming Soon) Real Estate
Econ Duel: Rent or Buy?
Career
The Economics of Choosing the Right Career
Practice Questions
(Coming Soon) Navigating Career-Related Data
Practice Questions
Saving
The Miracle of Compound Returns
Practice Questions
(Coming Soon) Simple Saving Tips
