Choose wisely. There is only one correct answer to each question.
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1.
Which of the following would make the best core holding for most investors?
A large-blend fund. Large-blend funds own large companies with middle-of-the-road stock prices, which makes them boring but ideal core choices. Large-value funds and large-growth funds can both be more volatile than large-blend funds at times.
2.
Which of the following would make a good core stock holding?
A large-company thats financially strong and growing at a steady rate. This might be boring, but it would be reliable.
3.
Should a bond fund be a core holding for you?
Maybe. It depends on your asset allocation. When it comes to bonds, theres no one-size-fits-all answer. It all depends on your asset allocation.
4.
How big should your core be, at the very least?
Half of your portfolio. While your entire portfolio can be made up of core investments, it doesnt have to be. But holding just 25% of your portfolio in core holdings could lead to more thrills than your portfolio can stand.
5.
Core holdings should take up _______ of your portfolio.
At least two-thirds. As a rule, at least two-thirds is usually advised.
