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1.
Why might large-growth funds not be the best choice for a core mutual fund?
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They have big price swings. Their big swings mean that they could suffer big losses too.
2.
Core companies tend to be ________.
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Financially healthy. This feature helps make them worthy of being core stocks.
3.
Should a bond fund be a core holding for you?
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Maybe. It depends on your asset allocation. When it comes to bonds, theres no one-size-fits-all answer. It all depends on your asset allocation.
4.
How big should your core be, at the very least?
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Half of your portfolio. While your entire portfolio can be made up of core investments, it doesnt have to be. But holding just 25% of your portfolio in core holdings could lead to more thrills than your portfolio can stand.
5.
Which of the following would make a good core stock holding?
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A large-company thats financially strong and growing at a steady rate. This might be boring, but it would be reliable.