Recommendations & StrategiesQuestion 48 of 110
A younger investor with a long time horizon and high risk tolerance saving for retirement would most appropriately hold a portfolio weighted toward which of the following?
a.Money market instruments and short-term CDs
b.Long-term Treasury bonds exclusively
c.Growth-oriented equities
d.Fixed annuities with guaranteed rates
Explanation
A young investor with a long horizon and high risk tolerance can accept short-term volatility in exchange for higher long-term growth, making growth equities appropriate. Time allows recovery from market downturns and lets compounding work. Overly conservative holdings would likely fail to meet long-term retirement goals.
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