An asset allocation of 95% stocks and 5% bonds is considered ________ risk.

Question

Quizplus · Accepted Answer

An asset allocation of 95% stocks and 5% bonds is considered aggressive high risk. This is because the portfolio is heavily weighted towards stocks, which are generally considered more volatile and thus higher risk than bonds. The small allocation to bonds may provide some diversification benefits, but overall the portfolio is still very aggressive and suitable for investors with a high risk tolerance.

An Asset Allocation of 95% Stocks and 5% Bonds Is