Choose wisely. There is only one correct answer to each question.
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1.
To determine whether your existing portfolio fits your investing blueprint, you should answer questions such as _______.
All of the above. These are just some of the questions you should ask about your portfolio to make sure it fits your blueprint.
2.
What vital information does your goal give you?
Both of the above. Your goal tells you both how long youll be investing and how much money you can put at risk.
3.
When its time to rebalance your portfolio, which is the most likely to happen?
Youll probably have to increase your cash/bond position and decrease your stock position. Most of the time, stocks outperform cash and bonds. As a result, youll usually have to cut back your stock position when you rebalance.
4.
A successful portfolio is one that is filled with great investments.
False. As a rule, a successful portfolio contains investments that work together to help you reach your goals. A portfolio can be made up of "great" investments, but they may not necessarily work well together.
5.
Why might it be a good idea to remove redundant investments from your portfolio?
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.
