Choose wisely. There is only one correct answer to each question.
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1.
Different online asset allocation tools are good for giving you _______.
A ballpark view of your asset allocation. At best, you can expect a decent ballpark estimate of where you stand, though not a truly accurate determination.
2.
If you become more aggressive with your investments, which of the following is likely to occur?
Your risk will increase. As you become more aggressive, your risk will increase.
3.
Why is it hard to get consistent recommendations from different online asset allocation tools?
They all use different assumptions. They all use different assumptions about inflation rates, earnings, and possibly taxes.
4.
Your asset allocation is _______.
Your portfolios blend of stocks, bonds, and cash. Asset allocation simply means how youve divided up your investment mix.
5.
Investment professionals say which of the following is more important?
Your asset allocation. While selecting good funds or stocks is certainly important to meeting your goals, most investment professionals agree that asset allocation is even more important.
