Which of the following are commonly thought to be good general investment guidelines? I) Don't try to outguess the market, buying and holding generally pays off.
II. Diversify investments to spread risk.
III. Investments should be highly concentrated in your company's stock.
IV. 401K money is best placed in money market accounts because risk is very low.
V. Investments should be allocated to stocks, bonds, and money-market funds.
A)I, III, and IV
B)I, II, and V
C)II, IV, and V
D)III, IV, and V

Question

Quizplus · Accepted Answer

Option I, II, and V are widely recognized investment principles. Option III suggests investing heavily in one's company stock, which is not recommended due to the risk of losses if the company experiences difficulties. Option IV indicates placing all 401K money in money market accounts, which will not accumulate substantial interest in the long run, neglecting the potential advantages of investing in other asset classes. Therefore, the correct choice(s) are B.

Which of the Following Are Commonly Thought to Be Good