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1.
What does the "blend" in large-cap blend funds refer to?
Growth and value stocks. "Blend" is a recent term coined for those funds that include both growth and value stocks.
2.
What does a balanced fund own?
A balance of stocks and bonds. The typical balanced fund invests about 60% of its assets in stocks and 40% in bonds.
3.
Intermediate-term investors are usually advised to _______.
Use stocks to grow their money and bonds to protect what they make. This is a good balance for many intermediate-term goals.
4.
Which element is perhaps the most important for intermediate-term investors?
Diversification. Intermediate-term goals require a certain amount of growth without volatility, which can ruin the growth. Thats why intermediate-term goals tend to include a balance of volatilities in their investments.
5.
Intermediate-term investing begins with _______.
Determining your goals and what theyll cost. As with long-term investing, intermediate-term investing revolves around goals and their costs. Choosing the right investment is secondary.
