Test your knowledge

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1.
According to many financial professionals, what contributes the most to your portfolio's return and volatility?
Choose wisely. There is only one correct answer.
Your blend of investments. In other words, your asset allocation is what matters more than anything else.
2.
Which of the following groups of stocks provides the most opportunity for growth?
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Small-company stocks. As a general rule, smaller companies are growing faster than medium or large companies.
3.
What type of bond would be the least volatile part of an aggressive portfolio?
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Short-term bond. Short-term bonds are the least volatile of these options.
4.
Stocks from which nation would be considered emerging-market stocks?
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Nigeria. Emerging-market stocks are those of developing nations.
5.
Emerging-market stocks live up to their promise.
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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.