In general, an older saver should choose a financial portfolio based on
A)selecting safe assets to earn an expected real return of about zero.
B)maximizing expected return with only limited concern for variability
C)equal concern for expected return and variability.
D)avoiding tax-free securities.

Question

Quizplus · Accepted Answer

As an older saver, the priority should be to select safe assets that will protect their savings rather than taking risks to maximize returns. A realistic goal for this group may be to earn an expected real return of about zero, after inflation and taxes. This means that they will preserve their capital while earning a small amount of interest. Therefore, option A is the best choice.

In General, an Older Saver Should Choose a Financial Portfolio