Choose wisely. There is only one correct answer to each question.
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1.
What type of bond would be the least volatile part of an aggressive portfolio?
Short-term bond. Short-term bonds are the least volatile of these options.
2.
According to many financial professionals, what contributes the most to your portfolio's return and volatility?
Your blend of investments. In other words, your asset allocation is what matters more than anything else.
3.
Emerging-market stocks live up to their promise.
False. Although these stocks can be considered aggressive, often the emerging nations behind them have a lot of challenges to overcome. It remains to be seen just how promising they are.
4.
Tilting your portfolio toward growth stocks theoretically enhances its performance.
True. This is so because growth stocks generally outperform non-growth stocks.
5.
What type of bond would be the most volatile part of an aggressive portfolio?
High-yield bond. High-yield bonds are the most volatile of these options.
