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.
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.
3.
Why may tilting your portfolio toward growth stocks theoretically alter its performance?
Because companies that are growing at a decent rate should outperform companies growing at a slower rate. Over time, a stock's price follows its earnings. As a result, companies that are growing at a decent rate should outperform those companies growing at a slower rate.
4.
Stocks from which nation would be considered emerging-market stocks?
Nigeria. Emerging-market stocks are those of developing nations.
5.
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.
