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Asset Allocation

Q&A

Quick Test
Question #1: Trying to time the market rarely works because:

A. The crystal ball is usually at the repair shop.
B. Statistical data used for timing the market can be computed incorrectly.
C. During the five years ending 12/31/01, if you missed only the 10 best days in the market your return would have been less than 20% of what your return would have been had you stayed fully invested.
D. We never know what Mr. Bernanke will say ahead of time, and by the time he says it, it's too late.
Question #2: The asset allocation process involves:

A. Rebalancing at least once every 15 years.
B. Selecting the optional portfolio.
C. Establishing goals and gathering data.
D. Investing in last year's top 10 picks, and then hanging on for dear life.
Question #3: Studies have shown that asset allocation contributes how much of our overall investment returns?

A. 26%.
B. Between 35% and 66%.
C. 74.2376%.
D. Over 93%.
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Last Updated: 11/21/2005