) Marti is 31 years old and is saving for retirement. Which one of the following portfolio

allocations might best suit her situation if she is willing to accept a fair amount of risk in

exchange for long-term capital appreciation?

A) 60% bonds, 15% money funds and 25% real estate

B) 5% money funds, 10% bonds and 85% growth stocks

C) 25% bank CDs, 40% corporate bonds, 15% money market, 20% value stocks

D) 50% mortgage bonds, 5% money market, 45% municipal bonds

2) The fixed-weightings approach to asset allocation

A) is based on an allocation of an equal percentage of the portfolio to each separate asset

category.

B) requires periodic rebalancing of the portfolio to maintain the desired weights.

C) is based on periodic adjustments to category weights in response to market changes.

D) uses stock-index futures and bond futures in a market timing strateg