Strategy Beginner: Steps to a Suitable Portfolio

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.
You will want to keep tabs on your individual investments in order to make sure theyre _______.
Choose wisely. There is only one correct answer.
Still filling their original roles in your portfolio. Changes in management, style, and other factors can alter how well your investments are working for you.
2.
Why might it be a good idea to remove redundant investments from your portfolio?
Choose wisely. There is only one correct answer.
All of the above. Though a set of investments may be redundant, there are still some differences among them, which may make one preferable to keep over the others.
3.
A 40-year-old should put how much money in stocks?
Choose wisely. There is only one correct answer.
The amount is a matter of personal preference, based on the investors goal for the money. The rule of thumb would suggest that 40-year-olds put 40% of their assets in cash/bonds and the remaining 60% in stocks. But those percentages may be inappropriate, depending on an individual investors goal. Asset allocation is a matter of personal preference.
4.
To determine whether your existing portfolio fits your investing blueprint, you should answer questions such as _______.
Choose wisely. There is only one correct answer.
All of the above. These are just some of the questions you should ask about your portfolio to make sure it fits your blueprint.
5.
When you rebalance your portfolio, what should you keep in mind the most?
Choose wisely. There is only one correct answer.
Your goal. All other things will need to follow your goal.