Test your knowledge

Choose wisely. There is only one correct answer to each question.

Keep studying!

Review your answers below to learn more.

Should a bond fund be a core holding for you?

Choose wisely. There is only one correct answer.

Yes. Everyone should own bonds.

No. No one should own bonds.

Maybe. It depends on your asset allocation.

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.

Which is the quality of a great core holding?

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It outperforms everything else in a given year.

Its very risky.

Its boring.

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.

Core holdings should take up _______ of your portfolio.

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Very little

At least two-thirds

All

At least two-thirds. As a rule, at least two-thirds is usually advised.

All investors should have the same size core holding.

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True

False

False. Though different investors and experts will disagree, there is no one size for everyone.

Why might large-growth funds not be the best choice for a core mutual fund?

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Their risk level is too low

They have big price swings

They actually would be the best choice

None of the above

They have big price swings. Their big swings mean that they could suffer big losses too.

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