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.
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.
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.
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.
