PORTFOLIO FOUNDATIONS & GOALS
An accumulation of financial and real assets designed to transfer purchasing power into the future.
What is a portfolio?
How easily an asset can be bought or sold.
What is marketability?
Common stocks (such as shares of Apple) belong to this specific asset category.
What are variable-income securities?
What’s the color of a giraffe’s tongue?
Purple or black
The value of a $10,000 investment in Worlds of Wonder 10 years after its 1986 public offering.
$0
How quickly an asset converts to cash without significant loss of principal.
liquidity
Short-term needs and emergency investments must prioritize high liquidity and safety of this.
What is safety of principal?
What’s the only fruit with outside seeds?
Strawberry
The dollar value that a $10,000 initial investment in Microsoft in 1986 grew to after 10 years.
What is $500,000?
Dividing capital among broad asset classes such as stocks, bonds, cash, and real estate.
What is asset allocation?
Corporate bonds, municipal bonds, and preferred stock fall under this asset category.
What are fixed-income securities?
Which letter is not found on the periodic table of elements?
J
Without clear financial goals, a portfolio is described as being like this object.
What is "a boat without a rudder"?
Spreading risk within or across classes using non-correlated assets.
What is diversification?
Example of a speculative/alternative assets listed on Slide 7.
What are options and futures alongside real estate and collectibles
How many Cheetah Girls are there in the movie series of the same title?
4
Holding both emerging firms and established companies in a single portfolio allows an investor to seek explosive growth potential without taking on this.
catastrophic risk
A high-risk asset purchase where the probability of loss is substantial, but potential payoffs are very high.
What is speculation?
In the diversification example, rising oil prices benefit ExxonMobil but increase fuel costs for this company.
What is Delta Air Lines?
How many justices serve on the United States Supreme Court?
9