Although nearly all American investors realize the value of diversifying throughout development and value investments, couple can easily realize a passing grade on a examination of their understanding of the distinctions between The 2, As outlined by a fresh American Century Investments study.
Take a look at your knowledge with the Growth & Value IQ quiz beneath:
one. Which best describes a growth stock?
a) Stock which offers assured rate of development tied to buyer rate index.
b) 소액결제정책 Inventory in a company specializing in agriculture, lumber, landscaping, and various organic items.
c) A inventory in a firm demonstrating a lot better than normal revenue and earnings gains.
d) Every one of the above.
2. Which most effective describes a value inventory?
a) Stock in rapidly-developing company specializing in superior-worth, very low-Charge products and solutions, like a reduction retailer.
b) Inventory in a firm specializing in beneficial products, like treasured metals and jewelry.
c) Inventory which has a low selling price-to-e book ratio.
3. Which statement is legitimate?
a) Worth shares outperformed progress shares between 1927 and 2001.
b) Lesser company value shares outperformed larger organization worth shares among 1927 and 2001.
c) Maintaining a portfolio with a combination of development and value stocks typically is considered a prudent investment method.
4. All through intervals of powerful financial enlargement, which fund typically performs better?
a) Expansion.
b) Value.
c) Neither.
d) Equally.
five. Most of the time, value resources outpaced expansion resources in 2000 and 2001.
a) Legitimate.
b) Bogus.
six. Generally speaking, development resources outpaced worth cash through the nineties.
7. Which sort of fund is more possible to speculate in stocks spending a substantial dividend?
8. Increased selling price-to-earnings ratios Typically could be related to stocks in which sort of mutual fund?
9. What sort of inventory is described in this example: “Recognized baked-products business with sturdy harmony sheet and great money move dealing with short-term fall in reaction to modifications in senior management.”
10. What sort of stock is explained in this example: “Software program firm, savoring steady revenue will increase, is in the process of rolling out an eagerly predicted update to a favorite application software.”
Vital: one(c); 2(c); 3(d); four(a); 5(a); 6(a); 7(b); 8(a); 9(b); 10(a).