Choose wisely. There is only one correct answer to each question.
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1.
Core holdings should take up _______ of your portfolio.
At least two-thirds. As a rule, at least two-thirds is usually advised.
2.
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.
3.
All investors should have the same size core holding.
False. Though different investors and experts will disagree, there is no one size for everyone.
4.
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.
5.
Core companies tend to be ________.
Financially healthy. This feature helps make them worthy of being core stocks.
