Question

When deciding on your asset allocation, that is, where to invest, which of the following is least accurate?

A. The stock market is typically riskier than the bond market

B. If you have a long time to retirement, experts recommend that you should allocate more to stocks than to bonds

C. Since the stock market usually outperforms the bond market, you should keep most of your assets in stocks even if you are close to retirement, or need to meet some major expense in the next few years

D. Your choice of where to invest in part depends on your risk tolerance and your time horizon

Answer 1

The answer to the question is c ) since the stock market usually outperforms the bond market, you should keep most of your assets in stocks even if you are close to retirement, or need to meet some major expenses in the next few years

This is least accurate because holding money between stocks and bonds totally depends on personal risk tolerance and time horizon. As stocks are riskier than bonds it may not be accurate for a person near retirement or need some major expenses in future as the stocks can fall exponentially low too.

The rest of options are incorrect because they sound correct to an extent

I hope this helps you

Please press the like button

Took real efforts

Thanks & Regards