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1.
Which of the following groups of stocks provides the most opportunity for growth?
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Small-company stocks. As a general rule, smaller companies are growing faster than medium or large companies.
2.
According to many financial professionals, what contributes the most to your portfolio's return and volatility?
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Your blend of investments. In other words, your asset allocation is what matters more than anything else.
3.
Emerging-market stocks live up to their promise.
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False. Although these stocks can be considered aggressive, often the emerging nations behind them have a lot of challenges to overcome. It remains to be seen just how promising they are.
4.
What type of bond would be the least volatile part of an aggressive portfolio?
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Short-term bond. Short-term bonds are the least volatile of these options.
5.
Tilting your portfolio toward growth stocks theoretically enhances its performance.
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True. This is so because growth stocks generally outperform non-growth stocks.