Question

In general, the larger the proportion of your portfolio that is allocated to bonds, the lower will be your portfolio's overall risk

True or False?

Answer 1

False. The larger the proportion of your portfolio that is allocated to bonds, the lower the overall risk of your portfolio.

Step-by-step explanation:

False.

The larger the proportion of your portfolio that is allocated to bonds, the lower the overall risk of your portfolio.

Bonds are generally considered less risky than stocks because they provide a fixed income stream and have a lower level of volatility.

By including bonds in your portfolio, you can help reduce the overall risk and potentially increase the stability of your investment.