Portfolio Diversification Quiz

What are 2 important things to consider when building and managing your asset allocation?

Time horizon and risk tolerance

For a goal that's 25 years away, what may be appropriate due to the long time horizon?

Higher exposure to domestic and international stocks

Why might someone be willing to take on additional risk for a goal 25 years away?

Assumption of having time to regain lost ground

What may be appropriate for a short-term goal with low risk tolerance?

Higher exposure to bonds and cash equivalents Signup and view all the answers

Why is risk tolerance an important consideration in asset allocation?

To align investment choices with an individual's comfort level Signup and view all the answers

What are the 2 important things to consider when building and managing your asset allocation?

Time horizon and risk tolerance Signup and view all the answers

For a goal that's 25 years away, what might be appropriate due to the long time horizon?

Higher exposure to domestic and international stocks Signup and view all the answers

Why might someone be willing to take on additional risk for a goal 25 years away?

Assuming there's time to regain lost ground in the event of a market decline Signup and view all the answers

What is the benefit of a higher exposure to domestic and international stocks for a long-term goal?

Long-term growth potential Signup and view all the answers

How does time horizon influence risk tolerance in asset allocation?

Longer time horizons may allow for higher risk tolerance Signup and view all the answers

What is business communication?

Communication intended to help a business achieve a fundamental goal Signup and view all the answers

Where does business communication occur?

Internally and externally Signup and view all the answers

What can happen with internal and external forms of communication?

They can come with barriers that prevent the receiver from understanding the information Signup and view all the answers

What does the word 'communication' derive from?

The Latin word communis which implies common Signup and view all the answers

Why is the way people communicate and operate within a business vital?

It is vital to the success of the company in the business world Signup and view all the answers

Portfolio Diversification Quiz

Questions and Answers

What are 2 important things to consider when building and managing your asset allocation?

For a goal that's 25 years away, what may be appropriate due to the long time horizon?

Why might someone be willing to take on additional risk for a goal 25 years away?

What may be appropriate for a short-term goal with low risk tolerance?

Why is risk tolerance an important consideration in asset allocation?

What are the 2 important things to consider when building and managing your asset allocation?

For a goal that's 25 years away, what might be appropriate due to the long time horizon?

Why might someone be willing to take on additional risk for a goal 25 years away?

What is the benefit of a higher exposure to domestic and international stocks for a long-term goal?

How does time horizon influence risk tolerance in asset allocation?

What is business communication?

Where does business communication occur?

What can happen with internal and external forms of communication?

What does the word 'communication' derive from?

Why is the way people communicate and operate within a business vital?

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