Question

Which type of portfolio might a young investor who is not afraid of risk choose?

A A portfolio that is mostly cash.
B A portfolio with a high percentage of treasury bonds.
C A portfolio with a high percentage of conservative mutual funds.
D A portfolio with a high percentage of stocks

Answer 1

D A portfolio with a high percentage of stocks

Step-by-step explanation:

The portfolio that a young investor who is not afraid of risk would choose is a portfolio with a high percentage of stocks considering that they have a high potential for earning if they are manage appropiately but stock prices change all the time and posses greater risk than other options like treasury bonds that are government debt and conservative mutual funds that include different things like stocks and bonds and as it is diversified has less risk.

Answer 2

The type of portfolio that the young investor who is not afraid of risk choose is the portfolio with a high percentage of stocks. Stocks are able to return higher compared to others and this makes it give a high risk because of its performance of providing losses or either profit. The answer is letter D.