Try the Investor Knowledge Quiz - Part 3

Investor Education Month rolls on and so does out Investor Knowledge Quiz. This week in Part 3 we’ll deliver the next two questions in the quiz. If you missed the first part of the quiz you can revisit Part 1 here, and Part 2 here. Let’s move on to question five.

Question five continues our look at mutual funds.

The correct answer is:

Mutual funds invest in several different assets, and can includes stocks, bonds or other securities. They do not have a guaranteed return and do not guarantee a profit at all.

Question six deals with the warning signs of fraud and is also true or false.

The answer is:

 High return no risk investments are almost always fraudulent because you potential return cannot increase without your risk also increasing with it. If you can remember that you it can help you avoid investment fraud.

We’ve now looked at the first six questions in the Investor Knowledge Quiz. We’ll wrap up the quiz next week with the final question and a quick review of how you did and how stacks up against the Canadian public.