Question

True False Question ,please explain it 3 sentence An old man should allocate a larger percentage...

True False Question ,please explain it 3 sentence

An old man should allocate a larger percentage of their wealth on bonds than stocks, while young man should do the opposite

Homework Answers

Answer #1

This is a TRUE statement because an old man should always allocate a higher percentage of their wealth on bonds then stock because it will provide them with high level of security because when a person is old he does not have the liberty to take risk, so he should be avoiding stock investment. He should be focusing more into the bonds investment, as he will like to preserve his principal first and he would be okay with small rate of return and he will not like volatility also.

Young man has time on his hands and can do with volatile investments into stocks and he should be avoiding bonds because he can take risks for the long period of time.

Given statement is TRUE

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
True False Question ,please explain it 3 sentence Expecting that the government is going to lower...
True False Question ,please explain it 3 sentence Expecting that the government is going to lower the interest rate and keep it low for prolonged period, you should hold more financial securities with long maturity. such as bonds and stocks
True False Question ,please explain it 3 sentence Insurance company should not charge the same premium...
True False Question ,please explain it 3 sentence Insurance company should not charge the same premium for the same product on different clients
True False Question ,please explain it 3 sentence the insured may stay in the hospital as...
True False Question ,please explain it 3 sentence the insured may stay in the hospital as long as possible upon it doesn't exceed the limitation stated in the schedule of benefit
True False Question ,please explain it 3 sentence Saving money with bank is regarded as one...
True False Question ,please explain it 3 sentence Saving money with bank is regarded as one of the safest investments as there is no risk of losing capital
True False Question ,please explain it 3 sentence Average daily balance (ADB) is a way to...
True False Question ,please explain it 3 sentence Average daily balance (ADB) is a way to calculate interest for credit card. The interest of loan is calculated by multiplying the daily interest rate with average amount owed at the end of each day.
(TRUE/FALSE/UNCERTAIN QUESTION - Please explain your reasoning) Skilled individuals should favor immigration in countries where natives...
(TRUE/FALSE/UNCERTAIN QUESTION - Please explain your reasoning) Skilled individuals should favor immigration in countries where natives are more skilled than immigrants and oppose it otherwise.
Question 1. Answer true or false or uncertain, please explain briefly a) Consider a country that...
Question 1. Answer true or false or uncertain, please explain briefly a) Consider a country that adopts the fixed exchange rate system and uses monetary policy to sustain the fixed exchange rate. —To counter a speculative attack on its currency,the central bank must tighten monetary policy. Answer true,false,or uncertain.Please briefly explain your answer: b) —In a small open economy,the domestic real interest rate can be higher than the world real interest rate. Answer true,false,or uncertain.Please briefly explain your answer.
Answer below statements. Please also include a sentence with explanation. Question 1: The penalty constant λ...
Answer below statements. Please also include a sentence with explanation. Question 1: The penalty constant λ in penalized regression controls the trade-off between lack of fit and model complexity. TRUE or FALSE . Question 2: Elastic net regression uses penalties from both the ridge and lasso regression and hence combines the benefits of both. TRUE or FALSE . Question 3: If our predicting variables have high multicollinearity, we should prefer LASSO over ridge regression for model selection. TRUE or FALSE...
True/False Questions. For each question below, please answer “true” or “false” and explain why. An answer...
True/False Questions. For each question below, please answer “true” or “false” and explain why. An answer without an explanation will result in no credit. 2. (5 points) Max Gross has the utility function U(x,y) = max⁡{x, y}. If the price of x is the same as the price of y, Max will buy equal amounts of x and y. 3. (5 points) Charlie’s utility function is U(x,y) = xy^2. His marginal rate of substitution between x and y does not...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in...
Question: Explain whether the following statements are TRUE or FALSE. You should explain your answer in each case and show on a graph. a)   (……………..) If wages adjust fully to price increases in the long run, fiscal policy will have no effect on output. b)   (...................) A decrease in government spending and an increase in costs lead to a decrease in the price level certainly. c)   (……………..) An earthquake destroyed a small economy. As a result, the government decided to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT