Growth and Value: What's the Difference?

While the majority of American investors understand the magnitude of diversifying across growth and treasure funds, hardly any are able to get a dying grade on a test of their skill of the differences flanked by the two, according to a new to the job American Century Investments survey.

Test your skill with the Growth & Value IQ quiz beneath:

1. Which paramount describes a growth reserve?

A) Stock to facilitate offers guaranteed rate of growth fixed to consumer consequences file.

B) Stock in a company specializing in cultivation, clump, landscaping, and other organic products.

C) A reserve in a company demonstrating better than regular profit and income gains.

D) All of the more than.

2. Which paramount describes a treasure reserve?

A) Stock in fast-growing company specializing in high-value, low-cost products, like a write off retailer.

B) Stock in a company specializing in valuable goods, like precious metals and jewelry.

C) Stock to facilitate has a low price-to-book ratio.

D) All of the more than.

3. Which statement is loyal?

A) Value stocks outperformed growth stocks flanked by 1927 and 2001.

B) Smaller company treasure stocks outperformed better company treasure stocks flanked by 1927 and 2001.

C) Maintaining a portfolio with a combination of growth and treasure stocks in general is considered a prudent investment sound out.

D) All of the more than.

4. During periods of strong trade and industry increase, which endowment in general performs better?

A) Growth.

B) Value.

C) Neither.

D) Both.

5. Generally speaking, treasure funds outpaced growth funds in 2000 and 2001.

A) True.

B) False.

6. Generally speaking, growth funds outpaced treasure funds for the period of the 1990s.

A) True.

B) False.

7. Which type of endowment is more likely to invest in stocks paying a big dividend?

A) Growth.

B) Value.

C) Neither.

D) Both.

8. Higher price-to-earnings ratios normally would be associated with stocks in which type of mutual endowment?

A) Growth.

B) Value.

C) Neither.

D) Both.

9. What kind of reserve is described in this case: "Established baked-goods company with strong balance sheet and enjoyable cash drift experiencing temporary let go in end result to changes in senior management."

A) Growth.

B) Value.

C) Neither.

10. What kind of reserve is described in this case: "Software company, enjoying steady sales increases, is in the process of rolling revealed an eagerly anticipated bring up to date to a trendy software appliance."

A) Growth.

B) Value.

C) Neither.