Choose wisely. There is only one correct answer to each question.
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1.
Core companies tend to be ________.
Financially healthy. This feature helps make them worthy of being core stocks.
2.
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.
3.
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.
4.
All investors should have the same size core holding.
False. Though different investors and experts will disagree, there is no one size for everyone.
5.
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.
