The investment choice of an individual is affected by
I. their tolerance for risk.
II. their prior investment experience.
III. their marginal tax bracket.
IV. the stability of their income.
A) II and III only
B) II, III and IV only
C) I, III and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

All four factors listed (tolerance for risk, prior investment experience, marginal tax bracket, and stability of income) can impact an individual's investment choices. Tolerance for risk influences the types of investments an individual is willing to make, prior investment experience can shape their investment strategy, marginal tax bracket affects the tax implications of investment choices, and the stability of income can impact the level of risk an individual is willing to take on. Therefore, all four factors should be considered when making investment decisions.

The Investment Choice of an Individual Is Affected by