For an investor with a time horizon of 12 years and higher risk tolerance, an appropriate asset allocation strategy would be
A) 100 percent stocks.
B) 30 percent cash, 50 percent bonds, and 20 percent stocks.
C) 10 percent cash, 30 percent bonds, and 60 percent stocks.
D) 50 percent bonds and 50 percent stocks.
E) 100 percent bonds.

Question

Quizplus · Accepted Answer

An investor with a long time horizon and high risk tolerance is typically suited for a portfolio with a high allocation to stocks, as they offer higher potential returns over the long term despite their volatility.

For an Investor with a Time Horizon of 12 Years