Choose wisely. There is only one correct answer to each question.
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1.
A portfolio might become riskier over time because _______.
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.
2.
When rebalancing your portfolio, it is a good idea to weed out redundant investments.
True. When you have redundant investments, one of them usually has lower expenses and a stronger long-term risk/reward profile, which can make it an advantage.
3.
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.
4.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, identify your core investments.
True. Your core investments will be the ones that are central to your portfolio.
5.
When creating a blueprint for your investment portfolio, what should you start with?
Your goal. Your goal gives you vital information, such as how long youll be investing and how much money you can put at risk.
