Which of the following individuals would a portfolio containing 80 to 90% in common stocks be appropriate for?
A) John and Vanessa, a retired couple in their mid-60s
B) Michelle, a divorced middle-aged mother who has custody of her children, ages 2 and 6, and earns $60,000 a year in salary
C) Meredith and Joe, a blue-collar, two-income family with 2 children, both of whom will be starting college within the next 3 years
D) Ryan and Ramona, newlyweds who are in their mid-20s, have steady jobs, and are putting money aside for retirement
E) Antonio and Lora, a couple in their mid-50s who earn a combined $150,000 in salary and are planning to retire in 10 years

Question

Quizplus · Accepted Answer

A portfolio containing 80 to 90% in common stocks is appropriate for individuals with a long investment horizon and a higher risk tolerance. Ryan and Ramona, who are in their mid-20s and putting money aside for retirement, fit this profile. They have time to ride out market fluctuations and can benefit from the potentially higher returns offered by stocks.

Which of the Following Individuals Would a Portfolio Containing 80