Choose wisely. There is only one correct answer to each question.
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1.
If you choose to use flexible funds in your portfolio, it is probably not a good idea to use them as your core holding.
True. It is best to hold flexible funds outside your portfolio's core and monitor them rigorously.
2.
Flexible-fund managers _______.
May return more or less than style-box purists. Flexible managers aren't any better or worse than style-box purists. They're just different.
3.
If you choose to use flexible funds in your portfolio, which of the following is not a good idea?
Using them as core holdings and not monitoring them. It is most effective for most investors to hold flexible funds outside their portfolio's core and monitor them rigorously.
4.
If two of your flexible-fund managers are both favoring the same type of stocks at some point in time, _______.
You need to decide whether you're comfortable with the imbalance. Just as using flexible funds is a personal decision, so too is determining what to do if and when your flexible funds start to buy the same types of stocks.
5.
It is generally easier to build and maintain _______.
An all style-box-specific-fund portfolio. An all style-box-specific portfolio may not be the best portfolio, but it is typically easiest to build and maintain.
