QUESTION 5 Your risk tolerance represents O a. the amount of money you stand to lose. O b. your return objective. O c. your wealth or net worth. O d. the amount of time separating you from your money. e. your ability and willingness to take chances. QUESTION 6 An investment policy statement outlines O a. an investment advisor's approach to applying portfolio theory. O b. an institution's goals and investment decisions. O c. an investor's return objectives, risk preferences, and constraints. O d. a company's disclosures to investors. e. an investment firm's disclosures to clients. QUESTION 7 Gianna is 25 years old working at GOOGLE making approximately 80K per year. Based on her age, what would the best allocation for her in her 401K? 80% stocks 10% international 5% bitcoin 5% cash 50% stocks 30% bonds 20% cash 50% stocks 50% cash 30% stocks 50% bitcoin 10% cash 10% bonds QUESTION 8 When you invest in a mutual fund you a. invest in a diversified portfolio. b. pay only one transaction cost. c. select your securities individually. d. a. and b. O e. a., b., and c