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At this time, you have all of your money invested in a single Canadian chartered bank stock. How can you best build a more diversified portfolio?
I. Buy other bank stocks
II. Buy stocks in other sectors or industries
III. Buy bonds
Points: 1
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I and II, only
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I and III, only
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II and III, only
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I, II and III
Which affect your asset allocation decision?
I. Stage in life
II. Degreee of risk tolerance
III. Your forecast of economic conditions
Points: 1
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I and II, only
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I, II and III
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II and III, only
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I and III, only
Which statement is false?
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Investors in the early life stages need easy and quick access to funds, so they should invest in relatively safe and liquid assets.
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Investors who expect to be working for many more years may invest in stocks of smaller firms and growth stock mutual funds.
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Asset allocations grow more aggressive as investors age and deepen their understanding of the investment market.
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Investors nearing retirement may allocate a larger proportion of money toward investments that generate a fixed income.
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