Which of the Following Asset Allocation Strategies Subjects You to Relatively

question 86

Multiple Choice

Which of the following asset allocation strategies subjects you to relatively high risk and high return?

• A) 60% U.S. stocks, 30% real estate, 10% stocks in developing counties
• B) 20% large U.S. stocks, 20% small U.S. stocks, 40% bonds, 20% CDs
• C) 50% bonds, 25% CDs, 25% large U.S. stocks
• D) 25% large U.S. stocks, 25% CDs, 10% real estate, 40% bonds

---

Definitions:

Memory Development

The process by which individuals encode, store, and retrieve information over time.

Secondary Circular Reactions

A developmental stage in infants where they repeat actions to trigger a desired response in their environment, typically observed between 4 and 8 months of age.

Physical Understandings

The grasp of physical principles and how objects interact in the physical world, often developed in early childhood through observation and interaction.

Absent Objects

Concepts or items that are not physically present but can still have effects or be represented in thought.