Choose wisely. There is only one correct answer to each question.
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1.
Stocks trading at prices that are in line with their earnings, sales, or cash flows would help keep a portfolio conservative.
True. Stocks of this nature tend to have relatively low price risk, which helps dampen a portfolio's volatility.
2.
How aggressive you should be with your investments depends on several things. Which of the following is not one of them?
None of the above. All the factors listed are relevant.
3.
The stock of which foreign company would be the least volatile?
A large manufacturer. As a rule, the large companies would be the least volatile.
4.
Which type of bond is going to be the least volatile?
Short-term bond. Because the maturity dates of short-term bonds are nearer than those of longer-term bonds, short-term bonds tend to be less volatile. They often yield less, as well. Finally, they usually gain less than longer-term bonds when interest rates fall, but lose less when rates rise.
5.
Why are short-term bonds a good fit for a conservative portfolio?
Because they have short maturities, they are less volatile. Thus, short-term bonds are often advised for anyone wanting to make his or her portfolio more conservative.