A stock portfolio containing 80 percent common stocks is appropriate for:

Question

Quizplus · Accepted Answer

A stock portfolio containing 80 percent common stocks is generally appropriate for a young worker with a secure job putting money aside for retirement. This is because younger investors have longer time horizons to ride out market fluctuations and volatility, and can therefore afford to take on more risk with their investments. The high proportion of common stocks in the portfolio provides the potential for greater long-term returns, although it also comes with greater risk. Older investors and those with shorter investment horizons may prefer a more conservative portfolio with lower exposure to stocks.

A Stock Portfolio Containing 80 Percent Common Stocks Is Appropriate