Matt Jackson is single and 24 years old.He has just graduated from college and obtained a job making $26,400 a year.Which one of the following investments would you recommend for his long-term investment program?
A)Corporate bonds
B)Government bonds
C)Growth stocks
D)Certificates of deposits
E)Savings account

Question

Quizplus · Accepted Answer

Since Matt Jackson is young and just starting out in his career, he has a long investment horizon. Growth stocks historically provide higher returns for long-term investors compared to bonds and savings accounts. While they involve greater risk, younger investors like Matt can afford to take on more risk in exchange for potentially higher returns over time. Certificates of deposits and savings accounts generally offer low returns, while corporate and government bonds generally provide more stable returns but with lower growth potential compared to growth stocks. Therefore, growth stocks are the best choice for Matt's long-term investment program.

Matt Jackson Is Single and 24 Years Old