1) How different is your investment process than the one explained in Chapter 5

M6

13. Strategy 4 - Asset allocation Asset allocation is the proportion of your overall investment portfolio that you have invested in various categories of assets. Typical asset categories include, for example, equities (stocks or stock mutual funds), bonds (or bond funds), and cash (or cash equivalents such as Treasury bills). The following table illustrates several model portfolios that you can use as a basis for your own investment plan, depending on various factors, such as your time horizon, your risk tolerance, and your investment philosophy: Risk Tolerance/Investment Philosophy Asset Allocation and Time Horizons 0–5 Years 6–10 Years 11+ Years   10% Cash 20% Bonds 100% Equities High Risk/Aggressive 30% Bonds 80% Equities     60% Equities               20% Cash 10% Cash 20% Bonds Moderate Risk/Moderate 40% Bonds 30% Bonds 80% Equities   40% Equities 60% Equities             35% Cash 20% Cash 10% Cash Low Risk/Conservative 40% Bonds 40% Bonds…

N1. Account