For an investor with a time horizon of 12 years and higher risk tolerance,an appropriate asset allocation strategy would be
A) 100% stocks
B) 30% cash, 50% bonds, and 20% stocks
C) 10% cash, 30% bonds, and 60% stocks
D) 50% bonds and 50% stocks
E) 100% bonds

Question

Quizplus · Accepted Answer

A 100% stock allocation is suitable for an investor with a long time horizon and high risk tolerance, as it offers the potential for higher returns over the long term despite short-term volatility.

For an Investor with a Time Horizon of 12 Years