Exam 18: Asset Allocation

The more volatile the returns of individual investments in a portfolio,the more volatile the portfolio's returns are over time.

The purchasing of stocks in different industries,bonds,and several mutual funds would be a way to ________ your portfolio.

If a call option is purchased at a premium of $200 with the current price of the stock at $25 per share and an exercise price of $28 per share,to what price would the stock need to increase to exercise the option and sell the stock to realize a gain of 250 percent on the option? Ignore taxes and brokerage commissions. (a)$35 (b)$62.50 (c)$70 (d)$100

Individuals in an early stage of their careers can take ________ investment risk than those in the retirement stage.

In reality,many stocks are influenced by ________ the stock market overall.

The price at which an option allows you to purchase or sell shares of stock is the ________ price.

The more ________ the returns of individual investments in a portfolio,the more ________ the portfolio's returns are over time.

Asset allocation is

REITs are not