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1.
If you find yourself following the crowd in your investment choices, you are doing what kind of practice?
Behavioral finance. Behavioral finance covers a number of psychological practices that tend to be at odds with the mathematical approach of various investing theories.
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 suggests that investors cannot beat the market, so they should index it?
Efficient market theory.
4.
What practice is related to tax planning?
Asset location.
5.
Favoring smaller companies over larger ones is an example of ______.
