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1.
You need several pieces of information about a financial goal in order to determine the asset allocation strategy to use to achieve it. Which of the following is not one of those pieces of information?
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Current investment earnings rates. These will not help you determine an asset allocation strategy. For one thing, they may be different next year.
2.
If you become more aggressive with your investments, which of the following is likely to occur?
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Your risk will increase. As you become more aggressive, your risk will increase.
3.
Different online asset allocation tools are good for giving you _______.
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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.
Your asset allocation is _______.
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Your portfolios blend of stocks, bonds, and cash. Asset allocation simply means how youve divided up your investment mix.
5.
If you want to improve your chances of meeting your investment goal, what can you do?
Choose wisely. There is only one correct answer.
Invest more money now. Investing more will always improve your chances. So will lengthening your time horizon or becoming more aggressive with your investments.