Test your knowledge

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1.
What vital information does your goal give you?
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Both of the above. Your goal tells you both how long youll be investing and how much money you can put at risk.
2.
Why might it be a good idea to remove redundant investments from your portfolio?
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All of the above. Though a set of investments may be redundant, there are still some differences among them, which may make one preferable to keep over the others.
3.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, identify your core investments.
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True. Your core investments will be the ones that are central to your portfolio.
4.
A successful portfolio _______.
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Should contain investments that work together to help you reach your goals. A portfolio can be made up of "good" investments, but they may not work well together.
5.
A portfolio might become riskier over time because _______.
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Stocks grow more than bonds and cash. They will take up more and more of your portfolio over time. Since stocks are riskier, they will raise the overall risk level of your portfolio.