Which of the Following Would Not Be a Good Method

question 23

Multiple Choice

Which of the following would not be a good method of asset allocation?

• A) Restrict your portfolio to stocks
• B) Include bonds
• C) Include real estate
• D) Include mutual funds

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, distributed from the company's profits.

Preemptive Right

A shareholder's right to maintain their proportional ownership in a company by purchasing additional shares before they are offered to the public.

Common Stock

A form of corporate equity ownership, a type of security representing an ownership stake in a corporation.

Common Stock

Equity securities that represent ownership in a company, providing voting rights and a share in the company’s profits through dividends.