Strategy Beginner: Steps to a Suitable Portfolio

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1.
You will want to keep tabs on your individual investments in order to make sure theyre _______.
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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.
When rebalancing your portfolio, it is a good idea to weed out redundant investments.
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True. When you have redundant investments, one of them usually has lower expenses and a stronger long-term risk/reward profile, which can make it an advantage.
3.
When creating a blueprint for your investment portfolio, what should you start with?
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Your goal. Your goal gives you vital information, such as how long youll be investing and how much money you can put at risk.
4.
When its time to rebalance your portfolio, which is the most likely to happen?
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Youll probably have to increase your cash/bond position and decrease your stock position. Most of the time, stocks outperform cash and bonds. As a result, youll usually have to cut back your stock position when you rebalance.
5.
To determine whether your existing portfolio fits your investing blueprint, you should, among other things, identify your core investments.
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True. Your core investments will be the ones that are central to your portfolio.