Which of the following are commonly thought to be bad 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 IV
C) II, IV, and V
D) III and IV
E) I, II, IV, and V

Question

Quizplus · Accepted Answer

III and IV are considered bad investment guidelines. Concentrating investments in one's own company's stock can be risky due to lack of diversification. Placing 401K money solely in money market accounts may be too conservative, potentially not keeping pace with inflation or achieving long-term growth.

Which of the Following Are Commonly Thought to Be Bad