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Portfolios 307: Getting More Conservative

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1.
The stock of which foreign company would be the least volatile?
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A large manufacturer. As a rule, the large companies would be the least volatile.
2.
Which type of bond is going to be the least volatile?
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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.
3.
Which of the following companies would NOT lessen the volatility of your portfolio?
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Very small companies. Very small companies tend to grow quickly, and that makes them volatile -- too volatile for a conservative portfolio.
4.
To dampen volatility in your foreign investments, focus on small international companies in developed markets.
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False. You should focus on large companies, not small ones.
5.
How aggressive you should be with your investments depends on several things. Which of the following is not one of them?
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None of the above. All the factors listed are relevant.