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.
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.
3.
Core companies tend to be ________.
Financially healthy. This feature helps make them worthy of being core stocks.
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.
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.
