After Your Financial Plan Is Developed It Should Be

question 79

Multiple Choice

After your financial plan is developed it should be

• A) locked away for safe-keeping so it isn't stolen.
• B) reviewed every five years.
• C) monitored and updated annually.
• D) sold to others.

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Definitions:

Systematic Risks

The danger present in the whole market or a specific market segment, referred to as market risk, is unavoidable even with diversification.

Unsystematic Risks

The portion of risk in an investment that is attributable to the specific circumstances of an individual company or industry.

Efficient Frontier

A concept in portfolio theory where an investment portfolio is said to be efficient if it offers the highest expected return for a given level of risk.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, indicating how much the price of a security, derivative, or index fluctuates.