Strategy Intermediate: Core vs. Noncore Investments

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1.
Which of the following would make the best core holding for most investors?
Choose wisely. There is only one correct answer.
A large-blend fund. Large-blend funds own large companies with middle-of-the-road stock prices, which makes them boring but ideal core choices. Large-value funds and large-growth funds can both be more volatile than large-blend funds at times.
2.
Core companies tend to be ________.
Choose wisely. There is only one correct answer.
Financially healthy. This feature helps make them worthy of being core stocks.
3.
Which is the quality of a great core holding?
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Its boring. Core holdings dont make great dinner-party chatter. They do, however, provide the steady returns that your portfolio needs to achieve your goals.
4.
Why might large-growth funds not be the best choice for a core mutual fund?
Choose wisely. There is only one correct answer.
They have big price swings. Their big swings mean that they could suffer big losses too.
5.
Core holdings should take up _______ of your portfolio.
Choose wisely. There is only one correct answer.
At least two-thirds. As a rule, at least two-thirds is usually advised.