Investing Knowledge Quiz: Check Your Fundamentals
Quick, free investment knowledge check. Instant results.
Editorial: Review CompletedUpdated Aug 28, 2025
This investing knowledge quiz helps you gauge your grasp of risk, diversification, and markets with 15 quick multiple-choice questions. Get instant results to see where you stand and what to review next; if you want more practice, explore our investment basics test, take a focused financial markets knowledge quiz, or start with a beginner investing quiz.
Learning Outcomes
- Analyse different investment vehicles and their risk profiles
- Evaluate strategies for portfolio diversification
- Identify key financial metrics like ROI and P/E ratio
- Apply fundamental risk management principles
- Demonstrate understanding of market trends and fluctuations
- Master essential investing terminology and concepts
Cheat Sheet
- Investment Vehicles - Dive into the world of stocks, bonds, mutual funds and ETFs to discover how each option balances return and risk. Knowing these vehicles is like picking the right ride for your financial journey - some are thrill-seekers, others are smooth cruisers.
- Portfolio Diversification - Spread your investments across different assets to avoid roller-coaster swings in your portfolio. It's the classic "don't put all your eggs in one basket" strategy, helping you stay cool when markets get spicy.
- Return on Investment (ROI) - Calculate ROI using (Net Profit ÷ Cost of Investment) × 100% to measure how well your money is working for you. It's like grading your own financial report card!
- Price-to-Earnings (P/E) Ratio - Use P/E = Market Value per Share ÷ Earnings per Share (EPS) to see how much investors pay for each dollar of profit. A high P/E can mean big growth hopes, while a low one might signal a hidden bargain.
- Risk Management - Learn to set stop-loss orders and review your holdings regularly so you're never caught off guard by a market plunge. Think of it as putting on a helmet before the financial roller coaster.
- Market Trends - Keep an eye on headlines, charts and key indicators to forecast potential market moves. It's like tuning into a weather report but for your cash - sunny days, storms and all!
- Investing Terminology - Master buzzwords like "bull market," "bear market," "liquidity" and "volatility" so you can follow financial chatter like a pro. Clear lingo means clearer decisions.
- Asset Allocation - Mix stocks, bonds and cash in proportions that match your goals and comfort zone. It's like crafting a recipe: the right blend makes your portfolio taste just right.
- Compound Interest - Watch your money snowball by reinvesting earnings with A = P(1 + r/n)nt. Starting early is your secret superpower for wealth growth!
- Efficient Market Hypothesis (EMH) - Explore the idea that markets reflect all available info, making it tough to consistently beat average returns without extra risk. Embrace this concept to set realistic expectations.