Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
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.
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.
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.
4.
When figuring out whether your current portfolio matches your pattern, which question should you NOT ask?
How did my individual investments do last week? When examining your current portfolio, dont worry about the short-term performance of individual investments. Instead, focus on how these investments are--or arent--working together. Ask which investments are your core investments, and whether you have a lot of overlap among your investments.
5.
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.
