For an Investor with a Time Horizon of Four Years

question 51

Multiple Choice

For an investor with a time horizon of four years and higher risk tolerance, an appropriate asset allocation strategy would be

• A) 100 percent cash.
• B) 30 percent cash, 50 percent bonds, and 20 percent stocks.
• C) 20 percent cash, 40 percent bonds, and 40 percent stocks.
• D) 10 percent cash, 40 percent bonds, and 50 percent stocks.
• E) 100 percent bonds.

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Definitions:

Self-Distinctiveness

The tendency of individuals to perceive themselves as uniquely different from others in various aspects.

Individualist Cultures

Cultures that emphasize the importance of individual achievements and rights over group goals and cohesion.

Collectivist Cultures

Societies or groups where people prioritize the goals of the group over individual desires or goals, often emphasizing strong social ties and a high value on cooperation.

Narcissistic Individuals

People characterized by an inflated sense of self-importance, a deep need for excessive attention and admiration, and a lack of empathy for others.