Which of the following are generally considered to be good investment guidelines?
I. Sell any security that has become riskier than anticipated.
II. Hold all securities until they produce the highest profit attainable.
III. Sell securities only if the profit can be offset with a tax loss.
IV. Sell any security that no longer meets the needs of the investor.
A) I and IV only
B) I and III only
C) I, II and IV only
D) I, II, III and IV

Question

Quizplus · Accepted Answer

I is a good guideline because it is important to monitor and manage risks in a portfolio. IV is also important because an investor's needs may change over time, and it's important to ensure that the portfolio remains aligned with those needs. 
II is not necessarily a good guideline as it may not be feasible to hold on to securities indefinitely, and profits should be taken when they are reasonable and align with an investor's objectives. III is also not a good guideline because it prioritizes tax benefits over investment goals, which may not always align.

Which of the Following Are Generally Considered to Be Good