Question

Which of the following statements concerning risk tolerance is true?

A Option A: There is some evidence that women are less inclined to take risk than men.

B Option B: As investors approach retirement years, they take on more risk.

C Option C: Investors in the early life-cycle stages tend to be the biggest risk-takers.

D Option D: College-educated investors are lower risk-takers than investors without a college education.

Answer 1

Hello Sir/ Mam

YOUR REQUIRED ANSWER IS OPTION C

Analysing options:

• There is no conclusive proof that women are less inclines to take risk than men. Hence, FALSE
• As investors approach retirement, they take on less risk. Hence, FALSE
• Young investors are high risk takers as they have high risk taking abilities. Hence, TRUE
• There is no conclusive evidence to show that education have any relation with risk aversion/ tolerance. Hence, FALSE

I hope this solves your doubt.

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