Question 5 6pts Match each person to the asset allocation that fits their situation best: Malik is getting close to retirement and is [Choose] unwilling to take a lot of risk with retirement money. A portfolio with the majority invested in stable investements is right for him. Sebastian is 45 years old, supports a [Choose] family, and is committed to longterm investing for college and retirement. He does not need current income from the investments and would like moderate growth in his investments. Arya is 25 , has a great job and only [Choose] supports herself; she is comfortable with significant risk in her Vanguard Target Retirement 2015 Fund (VTXVX) 34.58% Stocks 64.29% Bonds 1.13% Short-term reserves This fund allocates 34.58% to U.S. stocks, 64.29% to U.S. corporate bonds, and 1.13% to short-term (cash) reserves. Put the following asset categories in order from most risky to least risky using the drop down menus. Large Company Stocks Cash (Money in a savings account) Small Company Stocks Corporate Bonds Bitcoin The most risky item on the list is ff the two [ Select ] igs more Large Company Stocks Cash (Money in a savings account) Small Company Stocks Corporate Bonds no Bitcoin insured. Question 6 5 pts Put the following asset categories in order from most risky to least risky using the drop down menus. Large Company Stocks Cash (Money in a savings account) Small Company Stocks Corporate Bonds Bitcoin The most risky item on the list is [Select fhe two [ Select ] Large Company Stocks igs more Cash (Money in a savings account) Small Company Stocks Corporate Bonds Bitcoin no investment risk since it is FDIC insured. Identify each asset allocation according to its level of risk: - Conservative: investors seek current income and stability and are not concerned with growth - Moderate: investors are looking for growth but with less risk than the overall stock market - Aggressive: investors seeking high growth potential and are comfortable with risk Hint: Review the asset allocation charts on the Schwab Risk Tolerance Questionnaire you completed in the module (see the last page). 50% corporate bonds, 30% cash, 20% large compa stocks [ Choose] 35% corporate Moderate bonds, 5% cash. large company Aggressive stocks, 25% smal company stocks. 0% bonds, 5% cash. Match each person to the asset allocation that fits their situation best: Malik is getting close to retirement and is [Choose] unwilling to take a lot of risk with retirement money, A portfolio with the majority invested in stable investements is right for him. Sebastian is 45 years old, supports a [Choose] family, and is committed to lon: term investing for college and retirement. He dc not need current income from the investments and would like moder. growth in his investments. Arya is 25, has a great job and onls supports herself: is comfortable wi significant risk in long-term investments. [ Choose ] 50% corporate bonds, 30% cash, 20% large company stocks 35% corporate bonds, 5% cash, 35\% large company stocks, 25% small company stocks 0% bonds, 5% cash, 50% large company stocks, 25% international stocks, 20% small compnay stocks This fund allocates the 98.4% of the portfolio to global stocks with 12% in emerging markets in developing countries, 17.7% in Europe, 12.3% in the Pacific (Asia), and 56.4% in North America (the U.S., Canada, and Mexico). Put the following asset categories in order from most risky to least risky using the drop down menus. Large Company Stocks Cash (Money in a savings account) Small Company Stocks Corporate Bonds Bitcoin The most risky item on the list is f the two types of stock, the brings more risk than the . Next, typically is considered a stable investment and lastly has no investment risk since it is FDIC insured. Talia is looking for a mutual fund that will match the results of her risk tolerance questionnaire. The results of Talia's risk tolerance questionnaire are: Aggressive allocation. Review the meaning of the aggressive allocation on page 4 of the Schwab risk tolerance questionnaire you completed (in the module). Then, review the choices below and choose the best option for Talia. Hint: Compare the asset allocation from Talia's result to the asset allocation for each fund. Optional: If you want, you can do a search using the symbol for each fund to read more about it on the Vanguard site. Question 4 6pts Identify each asset allocation according to its level of risk: - Conservative: investors seek current income and stability and are not concerned with growth - Moderate: investors are looking for growth but with less risk than the overall stock market - Aggressive: investors seeking high growth potential and are comfortable with risk Hint: Review the asset allocation charts on the Schwab Risk Tolerance Questionnaire you completed in the module (see the last page). 50% corporate bonds, 30% cash, 20% large company stocks 35% corporate bonds, 5% cash, 35% large company stocks, 25% small company stocks 0% bonds. 5% cash
