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:

Subgroups

Smaller groups formed within a larger group based on common interests, objectives, or characteristics.

Egocentric Perceptions

refer to the tendency to interpret and judge events from one's own point of view, often neglecting others' perspectives.

Scarce, Desired Resources

Resources that are in limited supply but are highly sought after due to their value or utility.

Realistic Conflict

A theory suggesting that conflict and antagonism between groups is caused by direct competition for limited resources.