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1.
Favoring smaller companies over larger ones is an example of ______.
Factor investing.
2.
In the bucketing approach to retirement allocation, where would funds for the distant future be placed?
In bonds and stocks. Putting that money in stocks and bonds will give it some room to grow as it awaits eventual use.
3.
What investment theory says that you can limit your volatility by spreading your risk among different types of investments?
Modern Portfolio Theory.
4.
In a nutshell, the efficient market theory says _______.
You can't beat the market. The theory says that stock prices are as correct as they possibly can be, and therefore you cannot beat the market. It has its detractors, however.
5.
What is a total-return approach in which a retiree segments a portfolio based on when the retiree expects to need the money?
