DWI CPD Test: Fact Or Fiction Is The S&P500 The Best Index To Invest In

1. What type of investing does the S&P 500 represent?

Passive index investing

Individual stock picking

Property flipping

Short-term trading

2. Why is diversification important when investing?

It increases fees

It reduces risk by spreading investments

It guarantees gains

It shortens investment time

3. What is one common reason people choose to invest in indexes like the S&P 500?

Unlimited tax deductions

Free financial advice

Low fees and simplicity

Daily interest payments

4. Is the S&P 500 the best index for every investor?

Yes, always

No, it depends on goals and risk tolerance

Only for people over 50

Only if you live in the US

5. What is the best approach to evaluating an index fund’s performance?

Based on historical long-term trends

Based on current year returns

Based on its founder

Based on stock tips