Respuesta :
The answer to this question is a. A portfolio of with a high percentage of stocks.From the options above, stock is considered the most volatile type of investments and considered high risk& high return. The price of stock could change within days and this could either give a really large profit for the shareholders or make shareholders lose their capital badly when the market price of the stock fall down.
The option A is correct. A portfolio with a high percentage of stocks might prefer a young investor who is not afraid of risk
Further Explanation:
The portfolio is the investment that contains the combination of equity, debt, stocks and mutual fund. It is basically the combination of different types of investment. A young investor who is not afraid of risk might choose those investment has a fluctuated returns and risk.
Justification for the correct and incorrect answer:
A.
A portfolio with a high percentage of stocks: This option is correct.
Stocks have a high risk and high returns. The young investor opts for this type of investment to get high returns with high risk.
B.
A portfolio with a high percentage of conservative mutual funds: This option is incorrect.
The young investor is not preferred this as it does not carries high returns. There is no risk in mutual funds.
C.
A portfolio that is mostly cash: This option is incorrect.
The young investor may not opt for this as this carries the cash only. The young investor has not preferred this cash investment.
D.
A portfolio with a high percentage of treasury bonds: This option is incorrect.
The young investor has not preferred treasury bonds. Treasury bonds get the fixed return, the young investor will not prefer this.
Learn more:
1. Learn more about a stock portfolio
https://brainly.com/question/5728646
2. Learn more about earnings per share (EPS)
https://brainly.com/question/10985616
3. Learn more about stocks and bonds
https://brainly.com/question/1330190
Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Portfolio management
Keywords:
portfolio, young investor, afraid, risk, chose, percentage of stocks, conservative mutual funds, mostly cash, percentage of treasury bonds.
