Chapter 4~8: 20 Questions

Question 1

Diversification

다각화

Answer 1

investing your money into different types of investments to reduce the risk. By spreading your money across several investments, you decrease the chance of losing all your money in case one investment underperforms.

Question 2

Beneficiary

Answer 2

the person who receives the property or money after the death of a friend or relative.

Question 3

Investing vs investment?

Answer 3

Investing means putting money aside for a long time to make more money in the future. This is done for long-term financial goals, like saving for retirement. An investment account or arrangement is where you can put your money for this purpose. It’s important to not use this invested money for at least five years.

Question 4

Risk?

Answer 4

Risk refers to the amount of uncertainty regarding the return on an investment. In business, it means the possibility of losing money or making less profit.