AAII

1. With a dollar cost averaging plan, you would invest:

An average amount determined by the market level each month

A fixed amount at set intervals over a long period

An amount that varies depending on the total value of the investment

2. Value averaging is best used with what time horizon?

Long

Short

Intermediate

3. When you start a value averaging plan, you know the amount you will be investing each period.

True

False

4. Which plan has a more aggressive investing style?

Dollar cost averaging

Value averaging

5. You can use an mutual fund’s automatic exchange program to carry out a value averaging plan.

True

False

QUIZ: First Steps to Successful Investing