Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
Different online asset allocation tools are good for giving you _______.
Choose wisely. There is only one correct answer.
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.
2.
Why is it hard to get consistent recommendations from different online asset allocation tools?
Choose wisely. There is only one correct answer.
They all use different assumptions. They all use different assumptions about inflation rates, earnings, and possibly taxes.
3.
Your asset allocation is _______.
Choose wisely. There is only one correct answer.
Your portfolios blend of stocks, bonds, and cash. Asset allocation simply means how youve divided up your investment mix.
4.
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.
5.
If you become more aggressive with your investments, which of the following is likely to occur?
Choose wisely. There is only one correct answer.
Your risk will increase. As you become more aggressive, your risk will increase.