In investment matters, generally young workers compared to older workers will:
A)Minimize expected return and focus more on variability
B)Maximize expected return and focus less on variability
C)Have equal concern for expected return and variability
D)Be more risk-averse

Question

Quizplus · Accepted Answer

Young workers generally have a longer investment timeline, which allows them to take on more risk and focus more on maximizing expected return. As they have a longer horizon to achieve financial goals, they can withstand short-term fluctuations in the market, resulting in a greater likelihood of higher returns over time. Therefore, they tend to prioritize maximizing expected return over reducing variability or playing it safe.

In Investment Matters, Generally Young Workers Compared to Older Workers