For an investor with a time horizon of 4 years and higher risk tolerance,an appropriate asset allocation strategy would be
A) 100% cash
B) 30% cash, 50% bonds, and 20% stocks
C) 20% cash, 40% bonds, and 40% stocks
D) 10% cash, 40% bonds, and 50% stocks
E) 100% bonds

Question

Quizplus · Accepted Answer

An investor with a time horizon of 4 years and higher risk tolerance should allocate their assets in a way that provides the potential for growth while also managing risk. Option C, with 20% cash, 40% bonds, and 40% stocks, provides a balance between these considerations.

For an Investor with a Time Horizon of 4 Years