Recommendations & StrategiesQuestion 41 of 100
A 30-year-old client with stable income, a long time horizon, and high risk tolerance wants aggressive growth. Which asset allocation is MOST suitable?
a.90% money market, 10% Treasury bills
b.70% investment-grade bonds, 30% cash
c.80% diversified equities, 20% bonds
d.100% short-term CDs
Explanation
A young investor with a long horizon and high risk tolerance seeking growth is best served by an equity-heavy allocation that can compound over time and weather volatility. Cash-heavy or bond-heavy portfolios would not meet the aggressive growth objective. Suitability aligns the portfolio with the client's profile.
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