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Consider the following table of recommended asset allocation percentages of cash/bonds/equity: Risk tolerance / Investment strategy Low risk / Conservative Moderate risk / Moderate High risk / Aggressive 0-5 years 6-10 years 35/40/25 20 / 40/40 20 / 40/40 10/30 / 60 10/30/600/20/80 11+ years 10/30/60 0/20/BO 0/0/100 If you believe that the allocation of assets in your portfolio should be modified to meet your retirement needs, then it is recommended that your holding of: Check all that apply. O Cash and cash equivalents be decreased Bonds be decreased Equities be increased Bonds be increased Equities be decreased O Cash and cash equivalents be increased Financial experts recommend that you should review and rebalance your investment portfolio at least once every 3 years which of the following statements is true regarding the dollar-cost averaging strategy? Check all that apply. year O Dollar-cost averaging is successful in a rising, fluctuating, or dedining market. quarter An advantage of dollar-cost averaging is that it imposes and requires-Investor discipline. month U Using this strategy, you can purchase a larger number of shares in a rising market than in a declining market For this strategy to be successful, you must be lucky and knowledgeable; discipline is irrelevant. U An advantage of dollar-cost averaging is that it can reduce the average cost of purchased shares over a long investment period As a long-term investor, how should you respond to a bear market? O Hold tight; do not sell, but do not continue investing O Continue with your investment plan; it is good to buy while the prices are low. O Sell quickdy to stop the bleeding

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