Test your knowledge

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

0%
Keep studying!

Get a certificate for this quiz
Enter your name to generate a certificate that you can save or print immediately. Optionally, add your email address to have a copy of the certificate emailed to you.


Review your answers below to learn more.
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?
Choose wisely. There is only one correct answer.
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 youre uncomfortable taking on more risk, what can you do to improve your chances of meeting your goals?
Choose wisely. There is only one correct answer.
Invest more each month and lengthen your time horizon. Neither investing more each month nor lengthening your time horizon increases your risk. But decreasing your exposure to bonds/cash increases your possible three-month loss.
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 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.
5.
Which is NOT a limitation of online asset allocation tools?
Choose wisely. There is only one correct answer.
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.