Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds.
The correct answer is a) a portfolio of with a high percentage of stocks.
Explanation:
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.
Work Cited
"Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds." Custom-Writing, 3 June 2020, custom-writing.org/qna/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.
1. Custom-Writing.org. "Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds." June 3, 2020. https://custom-writing.org/qna/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.
Bibliography
Custom-Writing.org. "Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds." June 3, 2020. https://custom-writing.org/qna/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.
References
Custom-Writing.org. 2020. "Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds." June 3, 2020. https://custom-writing.org/qna/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.
Reference
Custom-Writing.org. (2020, June 3). Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds. Retrieved from https://custom-writing.org/qna/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/
References
Custom-Writing.org. (2020) 'Which type of portfolio might a young investor who is not afraid of risk choose? a) A portfolio of with a high percentage of stocks b) A portfolio with a high percentage of conservative mutual funds c) A portfolio that is mostly cash d) A portfolio with a high percentage of treasury bonds'. 3 June.