Question

To which of the following markets would an investment adviser recommend you allocate approximately 80% of your money if you wanted to maintain a relatively low degree of risk?

A) European stocks
B) Asian stocks
C) U.S. stocks
D) Latin American stocks

Answer 1

An investment adviser would recommend allocating approximately 80% of your money to U.S. stocks if you want to maintain a relatively low degree of risk.

Step-by-step explanation:

An investment adviser would recommend allocating approximately 80% of your money to U.S. stocks if you want to maintain a relatively low degree of risk.

The investment choices mentioned in the question have a tradeoff between expected return and risk. Stocks generally have higher risk but also have the potential for higher returns.

By allocating a majority of your money to U.S. stocks, you can potentially achieve a reasonable level of return while still managing your risk.