Test your knowledge of Investment Planning.
Question 1:
Asset Allocation is:
A – The process of deciding what percentage of your money to put into different asset classes. – true
B – The process of deciding which of the various market sectors is right for your investments. – false
C – The process of deciding between investing in a taxable and tax-deferred vehicle. – false
Note:. Asset Allocation is the process of deciding what percentage of your money to put into different asset classes.
Question 2:
Because a mutual fund is invested in numerous securities, it offers you automatic:
A – Asset allocation – false
B – Asset preservation – true
C – Diversification – false
Note: Because a mutual fund is invested in numerous securities, it offers you automatic asset preservation.
Question 3:
Stock investments offer the highest potential returns with the greatest amount of risk. – True