Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
All investors should have the same size core holding.
False. Though different investors and experts will disagree, there is no one size for everyone.
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.
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.
5.
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.
