Three Fund Portfolio Quiz

What is the primary goal of the three fund portfolio?

• To focus solely on US stocks

• To maximize short-term gains

• To achieve diversification with minimal effort

• To invest in individual stocks

Which of the following is NOT a component of the three fund portfolio?

• US total stock market index fund

• International stock market index fund

• Total bond market index fund

• Real estate investment trust

Why are the fees for the three fund portfolio generally low?

• Because they focus on short-term trading

• Because they include high-risk investments

• Because they are passively managed

• Because they are actively managed

What is a ticker symbol?

• A unique code for identifying a stock or ETF

• A measure of market volatility

• A type of bond

• A financial advisor's certification

How should younger investors generally allocate their assets in the three fund portfolio?

• Equally among all three funds

• More towards stocks

• More towards international stocks

• More towards bonds

What is the purpose of rebalancing a portfolio?

• To increase the number of funds

• To focus on short-term gains

• To maintain the desired asset allocation

• To eliminate bonds from the portfolio

What is a potential downside of not rebalancing your portfolio?

• Increased exposure to international stocks

• Increased tax liabilities

• Higher management fees

• Drifting away from your risk tolerance

What is a key benefit of consistent investing?

• It guarantees high returns

• It helps grow your balance over time

• It eliminates market risk

• It focuses on short-term gains

What is the One Fund portfolio strategy?

• Focusing on international stocks

• Investing in multiple ETFs

• Investing in a single ETF for life

• Investing only in bonds

What is the average annual return of the stock market according to the video?

• 5.5%

• 8.5%

• 10.5%

• 12.5%