For an investor with a time horizon of 15 years and moderate risk tolerance,an appropriate asset allocation strategy would be
A) 100% stocks
B) 40% cash and 60% stocks
C) 30% cash, 50% bonds, and 20% stocks
D) 50% bonds, and 50% stocks
E) 20% bonds, and 80% stocks

Question

Quizplus · Accepted Answer

A 15-year time horizon allows for a higher allocation to stocks due to their potential for higher returns over the long term. An 80% allocation to stocks is suitable for moderate risk tolerance, balancing growth potential with some stability from bonds.

For an Investor with a Time Horizon of 15 Years