Final Answer:
Equity investors typically have a 4 to 6 year investment horizon. Thus, the correct answer is d) 4 to 6.
Step-by-step explanation:
Equity investors typically have an investment horizon ranging from 4 to 6 years (option d). This time frame reflects a medium-term perspective that aligns with the nature of equity investments in stocks or shares of companies.
Equity investments are considered long-term investments compared to shorter-term options like bonds or money market instruments. Investors in equities often aim to participate in the growth and success of companies over a reasonably extended period. This longer horizon allows investors to ride out market fluctuations and benefit from potential appreciation in the value of their holdings.
A 4 to 6-year investment horizon provides investors with an opportunity to weather short-term market volatility and capitalize on the potential growth and performance of the companies in which they invest. It allows for enough time to assess the fundamental performance and potential of the invested companies while also providing a buffer against short-term market fluctuations that may affect stock prices.
This medium-term horizon allows investors to balance the need for growth and potential returns with a level of risk tolerance that accommodates market fluctuations. However, investment horizons can vary based on individual goals, risk tolerance, and market conditions, and some investors may hold equities for shorter or longer periods based on their specific investment strategies and objectives.
Thus, the correct answer is d) 4 to 6.