Help
Course Catalog > Portfolios > 500
Portfolios 501: Why Bother with Investment Theory?

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Favoring smaller companies over larger ones is an example of ______.
Choose wisely. There is only one correct answer.
Factor investing.
2.
What investment theory says that you can limit your volatility by spreading your risk among different types of investments?
Choose wisely. There is only one correct answer.
Modern Portfolio Theory.
3.
What is the gist of the bucketing approach to retirement allocation?
Choose wisely. There is only one correct answer.
You segment your portfolio based on when you expect to need your money. Segmentation is done in order to fund several years of retirement.
4.
What is a total-return approach in which a retiree segments a portfolio based on when the retiree expects to need the money?
Choose wisely. There is only one correct answer.
Bucketing.
5.
What investment theory suggests that investors cannot beat the market, so they should index it?
Choose wisely. There is only one correct answer.
Efficient market theory.