Why should a younger investor,saving for the long term,have most of their money in common stocks?
A)Over time,common stocks generate the largest average returns.
B)Investors with lots of time ahead of them have the opportunity to recover from a serious investment set-back.
C)They require the least amount of knowledge,research and expense.
D)All of the above are correct.
E)Only A and B are correct.

Question

Quizplus · Accepted Answer

Over a long period of time, common stocks have historically generated the largest average returns compared to other types of investments. Additionally, younger investors have more time to ride out market downturns and recover from any investment setbacks. However, choosing individual stocks requires knowledge, research, and expense, which is why many investors opt for investing in diversified index funds that include a variety of stocks.

Why Should a Younger Investor,saving for the Long Term,have Most