ECONOMICS
RISK AND RETURN
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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during college
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after college
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retirement
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30-50 years of age
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Detailed explanation-1: -There are four stages to an individual’s financial lifecycle. There is the accumulation of wealth, growing or managing wealth, preserving and protecting wealth, and transferring wealth. Each phase of the cycle overlaps and needs to be managed using a comprehensive approach.
Detailed explanation-2: -Investors are usually classified into three main categories based on how much risk they can tolerate. They include aggressive, moderate, and conservative. Knowing the risk tolerance level helps investors plan their entire portfolio and will drive how they invest.
Detailed explanation-3: -Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. Money market accounts. Fixed annuities. More items •01-Feb-2023