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.

A

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.

An investor choosing a portfolio.
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Academic.Tips. (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.

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Academic.Tips. (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://academic.tips/question/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/

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Academic.Tips. 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://academic.tips/question/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.

1. Academic.Tips. "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://academic.tips/question/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.


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Academic.Tips. "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://academic.tips/question/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.

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"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." Academic.Tips, 3 June 2020, academic.tips/question/type-of-portfolio-for-investor-who-is-not-afraid-of-risk/.

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