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
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
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