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1.
Core holdings should take up _______ of your portfolio.
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At least two-thirds. As a rule, at least two-thirds is usually advised.
2.
Core companies tend to be ________.
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Financially healthy. This feature helps make them worthy of being core stocks.
3.
Should a bond fund be a core holding for you?
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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.
Which of the following would make a good core stock holding?
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A large-company thats financially strong and growing at a steady rate. This might be boring, but it would be reliable.
5.
Why might large-growth funds not be the best choice for a core mutual fund?
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They have big price swings. Their big swings mean that they could suffer big losses too.