John Hernandez is 24 years old 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 years old.Which one of the investment factors listed below would be most important for an investor like Mr.Hernandez?
A)Beta
B)Income
C)Growth
D)Risk
E)Liquidity

Question

Quizplus · Accepted Answer

Since John Hernandez is young and single with no dependents, he has a longer investment horizon, which means he can afford to take more risks for higher growth potential. As he would like to retire at 60, growth investments like stocks and mutual funds can provide higher returns over the long term. Beta, income, risk, and liquidity are also important factors but growth should be the most important for a young investor.

John Hernandez Is 24 Years Old and Has Saved Enough