Chi Min-Ho is 24 and has saved enough money to fund an adequate emergency fund.In addition, he has saved $5,600 that can be used to fund an investment program.He is single, has no dependents, and would like to retire when he is 60.Which of the investment factors listed below would be most important for an investor like Mr.Min-Ho?
A)beta
B)income
C)growth
D)risk
E)liquidity

Question

Quizplus · Accepted Answer

Since Mr. Min-Ho is young and has a long investment horizon, growth should be the most important factor for him. He has enough funds saved up for emergencies and does not have any dependents, so he has a higher risk tolerance. Investing in growth-oriented investments such as stocks or mutual funds can help him achieve higher returns over the long term, which will be beneficial to achieve his retirement goal. Income and liquidity may be important factors for investors who are closer to retirement and need regular income or may need to access their funds quickly, but they may not be as important for Mr. Min-Ho at this point in his life. Beta and risk are also important factors to consider but are more closely related to investment analysis and selection rather than an investor's personal situation.

Chi Min-Ho Is 24 and Has Saved Enough Money to Fund