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, IV
B)I, II, IV
C)II, IV, V
D)III, IV, V
E)I,II,IV,V

Question

Quizplus · Accepted Answer

Investing in your company's stock is not a good idea as it lacks diversification and is risky. Therefore, options A and D are incorrect. Option C is incorrect as it does not include diversifying in stocks, bonds, and money-market funds. Option B includes all good investment guidelines: buying and holding, diversifying, and allocating investments to stocks, bonds, and money-market funds.

Which of the Following Are Commonly Thought to Be Good