Choose wisely. There is only one correct answer to each question.
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1.
Why is it hard to get consistent recommendations from different online asset allocation tools?
They all use different assumptions. They all use different assumptions about inflation rates, earnings, and possibly taxes.
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.
Which is NOT a limitation of online asset allocation tools?
They dont consider your time horizon. Most online asset allocation tools take your time horizon into account. They usually dont consider your tax situation, though. And all make different assumptions about things like inflation.
4.
Your asset allocation is _______.
Your portfolios blend of stocks, bonds, and cash. Asset allocation simply means how youve divided up your investment mix.
5.
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.