In investment matters, generally young workers compared to older workers will:
A) minimize expected return and focus more on variability.
B) be less risk-averse.
C) have equal concern for expected return and variability.
D) be more risk-averse.

Question

Quizplus · Accepted Answer

Generally, younger workers have a longer investment horizon and can afford to take on more risk in their investments. They have more time to recover from any losses and can potentially earn higher returns over time by taking on more risk. Therefore, younger workers tend to be less risk-averse than older workers.

In Investment Matters, Generally Young Workers Compared to Older Workers