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.</incorrect>

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.</incorrect>

Question 3:
Stock investments offer the highest potential returns with the greatest amount of risk. - True