An investor who wishes to save for their retirement in 20 years' time and who has a high propensity for taking risk is likely to invest in a managed fund which invests in government securities and:

Question

Quizplus · Accepted Answer

Since the investor has a high propensity for taking risk and has a long-term investment horizon (retirement in 20 years), investing in foreign equities would provide them with a higher potential for higher returns. Additionally, investment in government securities can provide some stability to the portfolio. Property and debentures may not provide the desired level of growth in the portfolio.

An Investor Who Wishes to Save for Their Retirement in 20