An asset allocation plan should consider which of the following investor characteristics?
I. income and employment security
II. marital status
III. age and proximity to retirement
IV. social relationships and peer groups
A) II only
B) I, II and III only
C) I, III and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

I, II, and III are relevant because they directly impact an investor's financial situation and risk tolerance. Income and employment security affect the ability to save and withstand market volatility. Marital status can influence financial goals and obligations. Age and proximity to retirement are crucial for determining investment time horizon and risk capacity. Social relationships and peer groups (IV) are less relevant to financial planning principles and are not typically considered in asset allocation.

An Asset Allocation Plan Should Consider Which of the Following