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1.
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.
2.
What is the gist of the bucketing approach to retirement allocation?
You segment your portfolio based on when you expect to need your money. Segmentation is done in order to fund several years of retirement.
3.
What investment theory says that you can limit your volatility by spreading your risk among different types of investments?
Modern Portfolio Theory.
4.
What practice is related to tax planning?
Asset location.
5.
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.