Question

Craig is a 25-year-old web developer. Because of his young age, his financial planner suggests an aggressive investment approach. Which type of an investment would you expect to find
in Craig's portfolio?
Bonds
Stocks
Mutual Funds
Money Market Account

Answer 1

Answer:

The correct answer would be option B, Stocks.

Explanation:

Craig is a 25 year old young boy who wants to invest his savings somewhere. So his financial planner suggests him to invest in aggressive investment options. Aggressive investment approach involves investing in such options that would give greater returns by taking higher degree of risks.

So the investment option in which the risk is higher is Stocks, with the greater level of return as well.

Stocks are considered to be the most volatile products for investment. For example if someone buys the stocks of some good company, the chances are, the person can enjoy good profits within short period of time, but the risk factor is also there. The stocks never behave predictably. The movement of stocks are unpredictable. So the chances of risks are high. It is said that 'high risk high return' is the best strategy to be used if you are looking for the aggressive approach of investment. So stocks are best suited for Craig.