Choose wisely. There is only one correct answer to each question.
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1.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, search for overlap among your investments.
True. Searching for overlap will weed out unneeded redundancy.
2.
When rebalancing your portfolio, it is a good idea to weed out redundant investments.
True. When you have redundant investments, one of them usually has lower expenses and a stronger long-term risk/reward profile, which can make it an advantage.
3.
When you rebalance your portfolio, what should you keep in mind the most?
Your goal. All other things will need to follow your goal.
4.
A 40-year-old should put how much money in stocks?
The amount is a matter of personal preference, based on the investors goal for the money. The rule of thumb would suggest that 40-year-olds put 40% of their assets in cash/bonds and the remaining 60% in stocks. But those percentages may be inappropriate, depending on an individual investors goal. Asset allocation is a matter of personal preference.
5.
You will want to keep tabs on your individual investments in order to make sure theyre _______.
Still filling their original roles in your portfolio. Changes in management, style, and other factors can alter how well your investments are working for you.