Choose wisely. There is only one correct answer to each question.
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1.
If you become more aggressive with your investments, which of the following is likely to occur?
Your risk will increase. As you become more aggressive, your risk will increase.
2.
If you want to improve your chances of meeting your investment goal, what can you do?
Invest more money now. Investing more will always improve your chances. So will lengthening your time horizon or becoming more aggressive with your investments.
3.
Different online asset allocation tools are good for giving you _______.
A ballpark view of your asset allocation. At best, you can expect a decent ballpark estimate of where you stand, though not a truly accurate determination.
4.
If youre uncomfortable taking on more risk, what can you do to improve your chances of meeting your goals?
Invest more each month and lengthen your time horizon. Neither investing more each month nor lengthening your time horizon increases your risk. But decreasing your exposure to bonds/cash increases your possible three-month loss.
5.
Investment professionals say which of the following is more important?
Your asset allocation. While selecting good funds or stocks is certainly important to meeting your goals, most investment professionals agree that asset allocation is even more important.