Choose wisely. There is only one correct answer to each question.
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1.
Which statement is true?
You may have more portfolios than you have investments. Depending on how many goals you have, you may have more portfolios than you have investments. That's fine.
2.
Why is it important to map out what each of your investment goals will cost?
Calculating the costs of your goals will allow you to see whether you can reach all of your investment objectives. There are no guarantees in investing, just trade-offs..
3.
What determines your asset allocation for each portfolio that you have?
Both of the above. Both the time horizon and the final portfolio value needed to fund the goal will help you determine your asset allocation.
4.
A danger of becoming a "collector" of investments rather than a holder of a real portfolio is that _______.
You could lose sight of your investment goals. Many collectors inevitably buy investments for the wrong reasons, especially after years of doing so.
5.
How many investment goals do most investors have?
More than one. Although most of us start out with one goal, we often end up with multiple goals as our lives change.
