Investing in an alternative energy mutual fund is a relatively risk-free way to enhance your financial portfolio. With a little research and a lot of good options, you can invest wisely and effectively. Take this quiz and find out how and why you might want to invest in an alternative energy mutual fund.
Which one of the following is not an example of alternative energy?
What does an alternative energy mutual fund do?
It invests in companies involved in developing alternative energy resources.
It raises money for alternative energy R&D.
It spearheads alternative energy projects.
What is the New Alternatives Fund’s claim to fame?
It was the first mutual fund founded by Bill Gates.
It was the first mutual fund to concentrate on alternative energy.
It was the first mutual fund in the US.
What is the criterion for the Guinness Atkinson Alternative Energy Fund to invest in a company?
It must be an American company.
It must have set a record that is listed in the Guinness Book of World Records.
It must derive more than half its income from alternative energy or AE technology.
When you invest in a mutual fund, what privileges do you acquire?
You can have your name and picture in the fund’s annual report.
You can attend the monthly board meetings.
You can buy or sell shares of the stock at any time.
Who manages an alternative energy mutual fund?
You manage it yourself.
A professional investment manager does.
Your bank manager does.
Where is the largest solar plant in Europe located?
What is a stock index?
an alphabetical list of viable mutual funds you can invest in
a list of global stocks categorized according to country
a report on the value of a group of stocks
Which alternative energy index is run by Dow Jones?
the S&P Global Alternative Energy Index
the World Alternative Energy Index
the Ardour Global Alternative Energy Index
In the context of this article, what does pure play refer to?
stocks that are invested in as sheer speculation
fraudulent stocks in nonexistent ecologically oriented companies
companies that are involved mainly in alternative energy
In the name S&P Global Alternative Energy Index, what does S&P stand for?
Standard and Poor
Safe and Prosperous
Sullivan and Peters
What is Morningstar?
a solar power plant in the US
an informative Internet resource
a nuclear power plant in Canada
How reliable is the information on an individual mutual fund Web site?
What is a prospectus?
detailed information about a fund
government plans for future projects
a scale mode of a power plant
How do you go about purchasing shares in a mutual fund?
You sign up on the fund’s Web site.
You buy them from the company or through an online broker.
You buy them at your bank.
What does the Burbo Bank Wind Farm do?
It builds wind power plants.
It invests money in wind power plants.
It creates energy from wind power.
Why is it preferable to own stock in a group of companies than in one individual firm?
There is less risk.
You can visit them all and see how they operate.
You can feel like a real mogul.
According to the article, what risk could be involved in investing in alternative energy mutual funds?
People could get bored with investing in alternative energy and opt for more solid commodities like gold or diamonds.
The companies in your portfolio could all go bust.
The market could suddenly shift.
How can you keep tabs on how your stocks are doing?
Call your stock broker every week.
Check the status of your fund on an online brokerage site regularly.
Call the CEOs of the individual companies once a month
Before you invest in a mutual fund, what should you find out about it?