Investing for Organizational Sustainability

quiz answers
4. What should you remember about investment advice?
d. All of the above: fees are negotiable, do your own homework,
control your own investment destiny instead of paying someone
else to do it.
Too many investors overpay for investment advice instead of being more
confident in their own abilities to research, understand, and make investment
decisions. With the help of the Internet, more information is available
to help you do your homework so that you can control your investment
destiny.
5. How should investment decisions be based?
c. On careful research.
Don’t make decisions to sell a stock because you are in a panic that a
stock dropped ten percent in one day. Start researching why there was a
decline and consider all the factors related to this decrease. Don’t make a
snap decision or be swayed by what others may be doing. Make a decision
based on your research about whether to hold or to sell.
6. What should you assume about the past and the future?
d. Assume nothing and do the research first.
Never assume that the past is an indication of the future of a how a
company and its stock will perform. There are always flukes and unforeseen
factors that can make the future better or worse than the past. It is
important to do the research rather than focusing on exciting, yet wild,
investing chances.
7. What happens when an investor over-diversifies?
a. They are spread too thin.
While it is a good strategy to diversify, an investor can go too far by
buying too many different stocks or securities. It can lead to confusion
and substantial trading fees. It is important to keep a balance to
your overall investment portfolio.
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