Which of the following statements is TRUE?
A) One should avoid investing in bonds because they give lower returns than do stocks.
B) If you need your money for something in two years, avoid putting it in stocks.
C) Retirees should allocate more of their investments to stocks.
D) Recent college graduates should allocate more of their money to bonds than to stocks.

Question

Quizplus · Accepted Answer

This statement is true because the stock market can be volatile in the short-term and it's important to have your money in a stable investment if you need it soon. The other statements are false. Bonds can be a good investment for income and stability, retirees should typically have a more conservative allocation with more emphasis on bonds, and recent college graduates typically have a longer investment horizon and can afford to take more risks with their investments, making stocks a more appropriate choice in many cases.

Which of the Following Statements Is TRUE