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Portfolios 501: Why Bother with Investment Theory?

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1.
What is a total-return approach in which a retiree segments a portfolio based on when the retiree expects to need the money?
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Bucketing.
2.
In a nutshell, the efficient market theory says _______.
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You can't beat the market. The theory says that stock prices are as correct as they possibly can be, and therefore you cannot beat the market. It has its detractors, however.
3.
Favoring smaller companies over larger ones is an example of ______.
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Factor investing.
4.
What investment theory says that you can limit your volatility by spreading your risk among different types of investments?
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Modern Portfolio Theory.
5.
What practice is related to tax planning?
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Asset location.