Charlie is sixty-four years old and is looking forward to his retirement next year.He currently has all of his 401(k)retirement money invested in the stock market.What financial principle from Chapter 1 does he need to understand better?
A)Nothing happens without a plan.
B)Knowledge is the best protection.
C)Stuff happens,the importance of liquidity.
D)Risk and return go hand in hand.

Question

Quizplus · Accepted Answer

Charlie needs to understand the principle of risk and return going hand in hand. Investing all of his retirement money in the stock market without considering the potential risks could lead to significant losses in the event of a market downturn. He should diversify his investments and consider lower-risk options as he approaches retirement age to protect his savings.

Charlie Is Sixty-Four Years Old and Is Looking Forward to His