Finance And Accounting

Question: What should a trader do if one portfolio is outperforming the others?
A
Sell off all stock in the worst portfolio.

B
Switch the portfolios around so they all have the same return.

C
Depends on the goals of each portfolio; they could still all be meeting expectations.

D
Do extensive analysis on the stocks.

Note: Answer not sure
1. Report
Question: How does selling options help someone with their portfolio?
A
It creates additional risk.

B
They can profit from the sale of options without having to cover them.

C
It guarantees small profits.

D
It forces the market price of the underlying stock up.

Note: Answer not sure
1. Report
Question: Why would someone buy call options at the same strike price but stagger the expiration date?
A
Because they believe there will be an upward movement in the price but are uncertain of the timing

B
Because they believe there will be an upward price movement but not for six months

C
Because they believe there will be a downward price movement but are uncertain of the timing

D
Because they believe there will be a downward price movement six months from now

Note: Answer not sure
1. Report
Question: What is a "straddle"?
A
Selling the underlying stock of an option

B
Holding both a call and a put at the same strike price

C
Watching the market to see what it will do

D
Holding both a call and a put at different strike prices

Note: Answer not sure
1. Report
Question: Why are younger people more apt to take on riskier investments?
A
Because they have a longer time horizon to allow for the risky investments to increase over time, and are immune to the short term changes

B
Because they do not know the value of money in the long run

C
Because they have less knowledge and do not know the potential for loss

D
Because there are short term gains to be made

Note: Answer not sure
1. Report
Question: Why is it important for an investor to know their risk tolerance level before trading options and investing in general?
A
Because it is required by law

B
Because it helps in tax planning

C
Because it helps them decide which industry to invest in

D
Because they can match their risk tolerance level with the types of stocks they are purchasing

Note: Answer not sure
1. Report
Question: What is the ideal number of portfolios for an experienced trader?
A
1

B
5

C
20

D
100

Note: Answer not sure
1. Report
Question: What would an investor who is bullish most likely do?
A
Sell call options

B
Buy call options

C
Do nothing

D
Buy both calls and puts to neutralize their position

Note: Answer not sure
1. Report
Question: What is a "margin account"?
A
Borrowing money from friends to trade stocks with

B
A stock trading account which allows the holder to borrow money from the broker

C
An account used only for trading options

D
An account which can be used only for trading large cap stocks

Note: Answer not sure
1. Report
Question: Which type of analysis relies on charting?
A
Fundamental

B
Technical

C
Both Fundamental and Technical

D
Neither Fundamental nor Technical

Note: Answer not sure
1. Report

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Question: What should a trader do if one portfolio is outperforming the others?

Question: How does selling options help someone with their portfolio?

Question: Why would someone buy call options at the same strike price but stagger the expiration date?

Question: What is a "straddle"?

Question: Why are younger people more apt to take on riskier investments?

Question: Why is it important for an investor to know their risk tolerance level before trading options and investing in general?

Question: What is the ideal number of portfolios for an experienced trader?

Question: What would an investor who is bullish most likely do?

Question: What is a "margin account"?

Question: Which type of analysis relies on charting?