1. Ashkan is 30 years old and he has a relativey low tolerance for risk in his investments. That is, he doesn’t like to see his investments fluctuate wildly in value from week to week; he wants to earn a relatively consistent return from year to year. Using Uncle Al’s “asset allocation flowchart”, which of the following asset allocations would you recommend for Ashkan’s retirement plan?
A. 30% stocks, 70% fixed income (bonds)
B. 30% precious metals, 40% stocks, 30% bonds
C. 60% stocks, 40% bonds
D. 40% stocks, 30% short-term bonds, 40% international bonds
2. You can lower your insurance premiums simply by:
A. increasing the amount of insurance coverage on your property.
B. increasing the number of inquiries into your credit history.
C. increasing the deductibles on your policies.
D. purchasing a personal articles floater on your expensive assets.