For an Investor with a Time Horizon of 6 to 10

question 66

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

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Definitions:

Electron Transport Chain

A series of complexes that transfer electrons from electron donors to electron acceptors via redox reactions, coupled with the transfer of protons across a membrane, generating ATP.

Proton Gradient

A gradient of hydrogen ions (protons) across a membrane, used as a source of energy for processes like ATP synthesis.

Potential Energy

The energy held by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors.

Citric Acid Cycle

A sequence of biochemical processes that aerobic life forms use to liberate energy stored by oxidizing acetyl-CoA, obtained from carbs, fats, and proteins.