Quiz – Risk Return Trade-off

Question 1 of 6

1. Question

Risk and return are unrelated

Higher expected returns require accepting greater volatility

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Higher returns always come with zero risk

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Lower risk always yields higher returns

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Risk and return are unrelated

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Question 2 of 6

2. Question

Savings accounts

Equities

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Treasury bills

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Money market funds

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Savings accounts

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Question 3 of 6

3. Question

Commodity futures

Bonds

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Small-cap stocks

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Cryptocurrencies

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Commodity futures

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Question 4 of 6

4. Question

The advice of strangers only

Age, income, and goals

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Only yesterday’s news

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Random guessing

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The advice of strangers only

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Question 5 of 6

5. Question

Match each item to its defining trait.

Sort elements

Growth potential with higher fluctuation
Relative stability and income
Requires greater volatility
Depends on age, income, and goals

Equities

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Bonds

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Higher expected return

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Risk tolerance

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Question 6 of 6

6. Question

Fill in the blanks.

The risk-return trade-off means higher returns require more Fill in the blank 1 of 3 . Equities offer Fill in the blank 2 of 3 while bonds offer Fill in the blank 3 of 3 .