take the financial literacy quiz

[Arcadio]

12/15. I've read a couple of books about investing.

 

[Red Squirrel]

Got like 6 right and they were just lucky guesses. I am fairly good financially in the sense that I pay my debts and have good credit score etc and know how to properly manage all that, but when it comes to investing it's something I should probably read up on more.

 

[Miramonti]

15/15 although question #7 needs to clarify "riskier" means. I correctly interpreted the question as high risk investments generally tend to pay off more than low risk investments over the long term.

Although if this question was interpreted as "If there are 2 risky investments but one of them is slightly higher risk than the other, etc." I would have answered the other way around.

I don't think 'risk' can be any indication of returns over the long run, only expected volatility of returns. In the long haul, if a 'high risk' investment that is priced appropriately for it's risk is compared to a 'low risk' investment that's priced appropriately, each would yield the same results. However there is no simple or broad rule for this that can be applied, so I concluded there isn't a benefit of investing in high risk *solely* because it's 'high risk.'

 

[SithSolo1]

9/15. If I hadn't second guessed myself it would have been 12/15. =\

 

[Golgatha]

14/15

Missed the one about Class A, B, C stock types.

 

[stlc8tr]

Ya me too, I was like 12/15 RAWR aw damn how did people know the mutual fund questions?

The one about mutual fund classes seemed aimed at people near the top of the tax bracket. Maybe its true everyone on ATOT makes $100k/yr :awe:

The different classes of mutual funds is another way for the industries to hide fees and expenses. It's something that you learn early on when researching retirement information.

Stuff like that is why Frontline had to do an episode on retirement.

 

[CPA]

14/15 got #10 wrong. had it right and changed it at the last second. dammit.

 

[ChAoTiCpInOy]

8/15

 

[Anubis]

9/15

 

[TXHokie]

Got like 6 right and they were just lucky guesses. I am fairly good financially in the sense that I pay my debts and have good credit score etc and know how to properly manage all that, but when it comes to investing it's something I should probably read up on more.

Same here - I got 9/15. I'm too poor to partake in advanced legalized gambling....er, I mean investing.

 

[ZaneNBK]

13/15

Overthought #7 as stating higher return should have said "potential" for higher returns/rewards.

Missed the mutual fund classes question as well, just didn't know it.