Strategy Intermediate: How to Invest for Intermediate-Term Goals

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.
What does the "blend" in large-cap blend funds refer to?
Choose wisely. There is only one correct answer.
Growth and value stocks. "Blend" is a recent term coined for those funds that include both growth and value stocks.
2.
What is the typical allocation of balanced funds?
Choose wisely. There is only one correct answer.
60% stocks and 40% bonds. Balanced funds are typically weighted a little toward stocks.
3.
What is the best investment option for the growth portion of an intermediate-term portfolio?
Choose wisely. There is only one correct answer.
A large-cap blend fund. Mutual funds offer instant diversification, and large-cap blend funds invest in the core of the U.S. market and include value and growth stocks among their holdings. They are steadier than most other types of stock funds.
4.
Intermediate-term investors are usually advised to _______.
Choose wisely. There is only one correct answer.
Use stocks to grow their money and bonds to protect what they make. This is a good balance for many intermediate-term goals.
5.
Which element is perhaps the most important for intermediate-term investors?
Choose wisely. There is only one correct answer.
Diversification. Intermediate-term goals require a certain amount of growth without volatility, which can ruin the growth. Thats why intermediate-term goals tend to include a balance of volatilities in their investments.