Choose wisely. There is only one correct answer to each question.
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1.
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.
2.
Stocks from which nation would be considered emerging-market stocks?
Nigeria. Emerging-market stocks are those of developing nations.
3.
Which type of bond is most like a stock?
Convertible bond. Convertible bonds can be, as their name suggests, converted into stocks. Because of this conversion feature, convertibles behave very much like stocks. They are generally less volatile than stocks, though, because they pay a fixed coupon (or yield).
4.
What's among the most significant move you can make to alter your long-term returns and volatility?
Reducing your bond and cash investments and increasing your position in stocks. Your blend of cash, stocks, and bonds likely contributes more to your portfolio's return and volatility than what investment styles you practice, what sectors you have exposure to, and what individual securities you choose. The more of your portfolio you have in stocks and the less you have in bonds and cash, the more intense your portfolio's performance can be.
5.
Tilting your portfolio toward growth stocks theoretically enhances its performance.
True. This is so because growth stocks generally outperform non-growth stocks.
