What is a pooled investment vehicle that allows individuals to participate in a diversified portfolio managed by professionals?

Exchange-Traded Fund (ETF) Hedge Fund Mutual Fund Venture Capital Fund

In the context of investment portfolio management, what is the strategy of spreading investments across various asset classes to mitigate risk?

Portfolio Concentration Diversification Speculative Investing Value Investing

What serves as a benchmark that reflects the overall performance of a specific stock market segment?

Market Capitalization Price-to-Earnings Ratio (P/E Ratio) Stock Market Index Trading Volume

Which type of trading order is designed to automatically sell a security if its price falls below a predetermined level?

Limit Order Market Order Stop-Loss Order Trailing Stop Order

Which term describes a company with a long history of financial stability and consistent dividend payments?

Blue-Chip Stock Emerging Market Stock Growth Stock Penny Stock

What category of stocks typically trades at a low price per share and is associated with small, speculative companies?

Blue-Chip Stock Large-Cap Stock Mid-Cap Stock Penny Stock

What financial instrument provides the holder with the right, but not the obligation, to buy or sell an underlying asset at a predetermined price?

Futures Contract Option Contract Swap Contract Warrant

What is the primary motivation for investors to include fixed-income securities like bonds in their portfolios?

Capital Appreciation Dividend Income Interest Income Voting Rights

Among different bond types, which generally carries a higher level of credit risk and, therefore, offers a higher potential return?

Corporate Bonds Government Bonds Municipal Bonds Treasury Bonds

How are bond prices typically affected when prevailing interest rates increase?

Bond prices increase Bond prices decrease Bond prices remain unchanged The effect is unpredictable