Choose wisely. There is only one correct answer to each question.
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1.
How aggressive you should be with your investments depends on what?
Your investment goal, your investment horizon, and your ability to handle volatility. Your goal, time horizon, and volatility tolerance should all help determine how aggressive your portfolio is.
2.
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.
3.
To alter your foreign investments, consider _______.
Smaller companies. As in the United States, foreign mid- and small-company stocks theoretically have a growth edge over their larger counterparts. Emerging-markets stocks are also an option for aggressive investors.
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.
