You are a new investor and are creating your first portfolio. You are considering a portfolio of two assets: 1) an S&P 500 Index Mutual Fund and 2) Cash. If you allocate 26% to Cash and the rest to the mutual fund, how might you expect this portfolio to perform ?
Multiple Choice
There is not enough information to determine how this portfolio will respond.
On a down day in the market, you expect your portfolio will fall less than the overall stock market declines
the riskiness of your portfolio exceeds that of the stock market.
On an up day in the market, your portfolio should precisely mirror the stock market's return
On a down day in the market, your portfolio should gain in value