A stock portfolio containing 80% common stocks is most likely to be appropriate for a
A)retired couple who needs a high return.
B)divorced middle-aged mother who needs a high return.
C)blue-collar, two-income family with five kids.
D)young newlywed couple putting money aside for retirement.
E)A portfolio with 80% in common stocks is not suitable for anyone under any circumstances.

Question

Quizplus · Accepted Answer

A stock portfolio containing 80% common stocks is generally considered suitable for individuals or couples with long-term investment horizons, such as the young newlywed couple putting money aside for retirement. This type of portfolio is more aggressive and carries higher risk, but also has the potential for higher returns over the long term. Retired couples, divorced middle-aged mothers, and blue-collar two-income families with five kids may have shorter investment horizons or more immediate financial needs, and may require more conservative investment strategies with lower risk profiles. Option E is also inaccurate, as there may be circumstances or individuals for whom an 80% common stock portfolio is appropriate.

A Stock Portfolio Containing 80% Common Stocks Is Most Likely