For an Investor with a Time Horizon of 6 to 10

question 34

Multiple Choice

For an investor with a time horizon of 6 to 10 years and lower risk tolerance,an appropriate asset allocation strategy would be

• A) 100% stocks
• B) 100% cash
• C) 30% cash, 50% bonds, and 20% stocks
• D) 10% cash, 30% bonds, and 60% stocks
• E) 100% bonds

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Definitions:

Inferiority Feelings

Emotions arising from perceived shortcomings compared to others, which can drive individuals to compensate or improve.

Pampering

Giving someone excessive attention, care, or kindness, often to the point of spoiling them.

Neglect

The failure to provide necessary care, assistance, or attention, leading to potential harm or deprivation in individuals dependent on such care.

First-borns

Individuals who are the first child born into their family, often attributed with certain personality traits or roles within the family.