Ted Washington is single and 25.He recently graduated from college and has a job making $40,000 a year.Which one of the following investments would you recommend for his investment program?

Question

Quizplus · Accepted Answer

Since Ted is young and has a long investment horizon, he has time to ride out the highs and lows of the stock market. Growth stocks offer the potential for higher returns over the long term but also come with higher risk. As a single individual with a steady income, he can afford to take on more risk with his investments. Corporate bonds and government bonds offer lower risk but also lower returns. Commodities such as oil are highly volatile and not suitable for most individual investors. CDs offer low risk but also very low returns, making them a poor choice for someone looking to build wealth over the long term.

Ted Washington Is Single and 25