Having just returned from the war in Afghanistan, David has $25,000 in his savings account. His girlfriend suggests that he talk with an investment advisor and let his money "make more money." David has his eye on a new Ford truck, but realistically 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 on the purchase of something new. He knows he may have other needs as well. David should buy high-growth stock with his funds because even though they are risky, they also have the greatest potential of bringing in a better return on his investment.

Question

Quizplus · Accepted Answer

David has a specific short-term goal in mind for his savings, which is the down payment for a new vehicle in four years. Investing in high-growth stocks is risky and not guaranteed to provide a return within this timeframe. A more suitable option for David would be to invest in a low-risk, short-term investment such as a high-yield savings account or a short-term bond fund.

Having Just Returned from the War in Afghanistan, David Has