Quiz on lesson ” Is Investing Risky? “

1. What is the most common perception about investing?

A. Investing is profitable.

B. Investing is easy.

C. Investing is risky

2. What are the most important risks that every investor needs to understand?

A. Risk of future consumption, total loss, volatility, and inflation.

B. Risk of future consumption, total loss, volatility, uncompensated risk, skewness, and inflation.

C. Risk of future consumption, volatility, and inflation.

3. Is volatility a risk for a short-term investor?

A. No, it is not a risk.

B. Yes, it depends on their time horizon and psychological tolerance for volatility.

C. Yes, it is a risk.

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