Strategy Beginner: Determining Your Asset Mix

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1.
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.
2.
If you want to improve your chances of meeting your investment goal, what can you do?
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Invest more money now. Investing more will always improve your chances. So will lengthening your time horizon or becoming more aggressive with your investments.
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.
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.
5.
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.