1. Studies have shown that asset allocation is:
    The single greatest determinant of investment performance.
    The least important factor affecting your investments' performance.
    Not a factor in investment performance.
2. An effective investment portfolio is:
    100 percent stocks.
    70 percent stocks.
    Varies with the individual.
3. Keeping too much money in money markets is not a good move because:
    This is too risky.
    The returns are too low.
4. A person who has a high tolerance for market volatility is planning to retire in 25 years. A reasonable amount to have in the stock market is:
    50 percent.
    30 percent.
    80 percent.
5. Your asset allocation plan should take into account your mutual funds' ...
    holdings according to the title of the fund.
    actual holdings, regardless of the title of the fund.
    fund managers' public statements.
6. Optimizers are a ------------ to asset-allocation planning. (Fill in the blank.)
    Boon
    Pseudo-scientific solution
7. Hiring a financial professional to make recommendations on developing an asset-allocation plan is:
    A good idea.
    A waste of money.
    Recommended, unless you're prepared to undertake a deep area of study and make some costly investment errors.
8. You can devise your own asset-allocation plan -- without a financial planner -- if you:
    Want to take a substantial risk with your total investment portfolio's performance.
    Have a good financial background and do some serious reading.
    Don't trust planners because you believe that they're all ripoff artists.
9. The main reason you should know specifically what types of stocks and sizes of companies are owned by your mutual funds -- regardless of what the brochures say -- is:
    So you can ensure diversification across companies by size.
    So you can know whether the fund managers are qualified.
    So you can gauge your next high-tech purchase.
10. Using software alone to devise your asset allocation plan can be faulty because:
    Your computer may malfunction.
    The process requires human judgment and consideration of your individual needs.