Choose wisely. There is only one correct answer to each question.
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1.
Which of the following groups of stocks provides the most opportunity for growth?
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?
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.
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?
Short-term bond. Short-term bonds are the least volatile of these options.
5.
Tilting your portfolio toward growth stocks theoretically enhances its performance.
True. This is so because growth stocks generally outperform non-growth stocks.