Having just returned from the Iraq war,David,a young soldier has $25,000 in his savings account.His girlfriend suggested that he talk with an investment advisor and let his money "make more money".David has his eye on a new Ford truck,but he knows that his old Jeep Cherokee will probably last another four years,at which time he will definitely need this money as a down payment or purchase of something new.David should buy high growth stock with his funds because even though they are risky,they also have the greatest potential of bringing in the better return on his investment.

Question

Quizplus · Accepted Answer

David has a specific goal in mind for his savings - to use it as a down payment or purchase of something new in four years. Investing in high growth stocks can be risky and unpredictable; there is no guarantee that David's investment will have grown enough in four years to meet his needs. Instead, David should consider investing in low-risk options such as a high-yield savings account or a certificate of deposit (CD) that will provide a guaranteed return in four years when he needs the funds.

Having Just Returned from the Iraq War,David,a Young Soldier Has