Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
You will want to keep tabs on your individual investments in order to make sure theyre _______.
Still filling their original roles in your portfolio. Changes in management, style, and other factors can alter how well your investments are working for you.
3.
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.
4.
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.
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.
