Brenda is a 25 year old investor who recently graduated from college and has a successful career, which type of stock should represent a good portion of her portfolio?

Question

Quizplus · Accepted Answer

Brenda is young and likely has a longer investment horizon, meaning she can afford to take on additional risk to potentially earn higher returns. Investing in growth stocks, which typically have higher potential for earnings growth but also higher risk, may be a good option for her. Defensive stocks (B) are typically for investors looking for stability and income stocks (C) for those who prioritize current income over growth. Risk-free stocks (D) do not exist as all investments carry some level of risk.

Brenda Is a 25 Year Old Investor Who Recently Graduated