The correct answer is a) a portfolio of with a high percentage of stocks.


In today’s financial marketplace, a solid portfolio is essential to any investor’s success. There are many strategies that you can adopt when building a portfolio as a young investor. Overall, it is recommended to have a well-diversified portfolio (e.g., real estate, startups, hedge funds, etc.) as it would ensure continuous long-term growth of your investments. Moreover, diversification helps you protect your assets in the case of a significant decline or an incremental change in the economy overtime.

However, speaking of taking risks, a high percentage of stocks in a portfolio would showcase a person’s courage and quick wit. Investing in stocks is traditionally seen as a risky business. Some of the prime examples of such risks would be economic risks, inflation, and market value risks. If a young investor is able to handle them, he or she is apt for the volatile business environment of today’s world.

An investor choosing a portfolio.
Source: https://www.arabbank.com