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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.
Favoring smaller companies over larger ones is an example of ______.
Factor investing.
3.
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.
4.
What is a total-return approach in which a retiree segments a portfolio based on when the retiree expects to need the money?
