Analysis Beginner: Determining Your Asset Mix

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1.
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.
2.
Why is it hard to get consistent recommendations from different online asset allocation tools?
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They all use different assumptions. They all use different assumptions about inflation rates, earnings, and possibly taxes.
3.
Investment professionals say which of the following is more important?
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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.
4.
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.
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.