Choose wisely. There is only one correct answer to each question.
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1.
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.
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.
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.
Which of the following groups of stocks provides the most opportunity for growth?
Small-company stocks. As a general rule, smaller companies are growing faster than medium or large companies.
5.
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.
