21
QuizMultiple Choice

N/A — Exam

Question 21 • Personal Finance

Which choice best shows correct alignment of risk and investment?

Answer
A
Long-term goal with diversified stocks.
B
Immediate need with high-risk investments.
C
Short-term goal with speculative assets.
D
Low risk tolerance with volatile assets.

Explanation

A long-term goal can allow time to ride out market ups and downs, and diversified stocks spread risk across multiple investments. This makes “Long-term goal with diversified stocks” the best alignment. Immediate needs and short-term goals generally call for more stable, accessible investments, while volatile assets do not suit a low risk tolerance.

AI-written and checked against the verified answer.

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