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As a Person Allocates More of His Savings to Shares

question 50

True/False

As a person allocates more of his savings to shares and less to government bonds, he will earn a higher rate of return but he must accept additional risk.


Definitions:

Risk

The possibility of facing harm or loss, which can arise from a variety of sources, including financial uncertainty, strategic decisions, or external events.

Self-Interest

The focus on one's own advantage or well-being without necessarily considering that of others.

Acceptable

Considered suitable or satisfactory under the circumstances or by societal standards.

Optimal

Optimal describes the most desirable or advantageous condition or level of performance achievable under given circumstances.

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