Question 1
Asset allocation should focus on
◦ the investor's financial and family situation.
◦ selection of individual securities within an asset class.
◦ maximization of current income.
◦ maximization of short-term profits.
Question 2
Jessica's portfolio consists of 30% common stock, 40% bonds, 15% foreign securities and 15% short-term securities. This asset allocation would be considered
◦ aggressive.
◦ moderate.
◦ conservative.
◦ passive.