Investment Portfolios: Asset Allocation & Diversification

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Which of the following is a type of asset class?

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1. Why should investors periodically rebalance a portfolio?

2. Which of the following is a benefit of diversification?

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About This Quiz & Worksheet

Test your understanding of the creation of a well-rounded portfolio by completing this quiz and worksheet. Questions focus on asset allocation, portfolio balance and diversification.

Quiz & Worksheet Goals

Information assessed includes:

  • Benefits of diversification
  • They type of investment that offers built-in diversification
  • Types of asset classes

Skills Practiced

  • Information recall - access the knowledge you've gained regarding why investors should continuously rebalance a portfolio
  • Reading comprehension - ensure that you draw the most important information from the lesson on investment portfolios
  • Knowledge application - use your knowledge to identify why asset allocation plans include cash as an investment

Additional Learning

Learn more about investing by completing the lesson titled Investment Portfolios: Asset Allocation & Diversification. The covered objectives include:

  • Name the different asset classes
  • Define volatility
  • Understand the purpose of rebalancing
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