Choose wisely. There is only one correct answer to each question.
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1.
Which of the following would make a good core stock holding?
A large-company thats financially strong and growing at a steady rate. This might be boring, but it would be reliable.
2.
Core companies tend to be ________.
Financially healthy. This feature helps make them worthy of being core stocks.
3.
Should a bond fund be a core holding for you?
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.
All investors should have the same size core holding.
False. Though different investors and experts will disagree, there is no one size for everyone.
5.
Which of the following would make the best core holding for most investors?
A large-blend fund. Large-blend funds own large companies with middle-of-the-road stock prices, which makes them boring but ideal core choices. Large-value funds and large-growth funds can both be more volatile than large-blend funds at times.