As wealth increases,which of the following is likely to account for a smaller fraction of a saver's portfolio?
A) corporate stock
B) corporate bonds
C) cash
D) U.S. government securities

Question

Quizplus · Accepted Answer

As wealth increases, savers are more likely to have a smaller fraction of their portfolio in cash because they may instead choose to invest in higher-yielding assets such as corporate stocks, bonds, or U.S. government securities. Cash is often seen as a low-yielding asset that does not provide significant returns over time, and as investors become wealthier, they may be more willing to take on risk in pursuit of higher returns.

As Wealth Increases,which of the Following Is Likely to Account