Choose wisely. There is only one correct answer to each question.
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1.
Which is the quality of a great core holding?
Its boring. Core holdings dont make great dinner-party chatter. They do, however, provide the steady returns that your portfolio needs to achieve your goals.
2.
Core holdings should take up _______ of your portfolio.
At least two-thirds. As a rule, at least two-thirds is usually advised.
3.
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.
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.
Why might large-growth funds not be the best choice for a core mutual fund?
They have big price swings. Their big swings mean that they could suffer big losses too.
