The First Step in Applying Asset Allocation to Your Personal

question 64

True/False

The first step in applying asset allocation to your personal financial plan is to ensure adequate liquidity.

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Definitions:

Equitable Mortgage

A mortgage subsequent to the first or legal mortgage. A mortgage of the mortgagor’s equity.

Covenant to Pay

An agreement in a contract where one party promises to pay a specified sum to another.

Original Mortgagor

is the initial borrower who takes out a mortgage loan secured by the property being mortgaged.

Hypothec

A legal term primarily used in civil law jurisdictions to describe a right or security interest granted over an asset to secure the repayment of a debt without transferring title.