What is your investment acumen?

Here's a quiz from NASD which purports to test your investment knowledge. Quiz. (I thought I would ace this one, but I only scored 89%. Dang.)

Via Kirkreport.

Update 12/9/03: Here's a review of that quiz. The author says that of 1,086 test takers only 35% passed. Unfortunately, he doesn't say what score a person had to achieve in order to pass.

Comments

[Eric]

I scored only 72...but I chose "don't know" on four questions for which I would have guessed the right answer. But I take issue with one of the questions:

"In general, investments that are riskier tend to provide higher returns over time than investments with less risk."

Even though it's obvious what they're getting at, the question is NOT correctly answered "true." The [more] right statement is "In general, investments that provide higher returns over time tend to be riskier than investments that provide lower returns over time." (And even that declarative isn't accurate, is it?)

Interesting exam, though.

[George]

Eric,
I got that one wrong. There are many investments that might have been considered "risky" in the past but are now considered "worthless."

For their statement to be true, those risky investments that performed well would have had to be so profitable that they would have raised the average performance of all risky investments above some other measure, for example the S&P 500 stock index. I suspect that hasn't happened, but there is no way to verify that, because worthless stock is dropped off of any stock index that it might have been on.

I like your version of the statement much better.

[Redman]

I agree with the Comments. All the questions were fair except for that one, which I missed.

[Bert9785]

67 :'( - however, I just started college, so now I feel good.