Accounts & CustomersQuestion 80 of 125
A customer with a long-term retirement horizon and a growth objective, comfortable with volatility, would most suitably be recommended:
a.Only Treasury bills
b.A diversified portfolio weighted toward equities
c.All assets in a single speculative stock
d.Only short-term certificates of deposit
Explanation
A long time horizon combined with a growth objective and tolerance for volatility supports an equity-weighted, diversified portfolio, which historically offers higher long-term returns. Concentrating in a single stock violates diversification principles, while holding only short-term instruments would not meet the growth objective.
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