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Portfolios 101: Steps to a Suitable Portfolio

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1.
A portfolio might become riskier over time because _______.
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Stocks grow more than bonds and cash. They will take up more and more of your portfolio over time. Since stocks are riskier, they will raise the overall risk level of your portfolio.
2.
Why might it be a good idea to remove redundant investments from your portfolio?
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All of the above. Though a set of investments may be redundant, there are still some differences among them, which may make one preferable to keep over the others.
3.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, search for overlap among your investments.
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True. Searching for overlap will weed out unneeded redundancy.
4.
A successful portfolio is one that is filled with great investments.
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False. As a rule, a successful portfolio contains investments that work together to help you reach your goals. A portfolio can be made up of "great" investments, but they may not necessarily work well together.
5.
When creating a blueprint for your investment portfolio, what should you start with?
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Your goal. Your goal gives you vital information, such as how long youll be investing and how much money you can put at risk.