Jian is 40 years old and he has a relatively low tolerance for risk in his investments. That is, he doesn't like to see his investments fluctuate wildly in value from week to week; he wants to earn a relatively consistent return from year to year. Using Doc White's advice (as in his "asset allocation flowchart"), which of the following asset allocations would you recommend for Jian 's retirement plan? A. 30% stocks, 70% fixed income (bonds) B. 30% precious metals, 40% stocks, 30% bondsC. 60% stocks, 40% bondsD. 40% stocks, 30% short-term bonds, 40% international bonds

Question

Tristan Ray

Business

8 April, 11:05

Jian is 40 years old and he has a relatively low tolerance for risk in his investments. That is, he doesn't like to see his investments fluctuate wildly in value from week to week; he wants to earn a relatively consistent return from year to year. Using Doc White's advice (as in his "asset allocation flowchart"), which of the following asset allocations would you recommend for Jian 's retirement plan? A. 30% stocks, 70% fixed income (bonds) B. 30% precious metals, 40% stocks, 30% bondsC. 60% stocks, 40% bondsD. 40% stocks, 30% short-term bonds, 40% international bonds

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Answers (1)

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Mckenzie Wilkerson · Answer 1

Answer:A. 30% Stock, 70% fixed income (bond)

Explanation:

The stock market is the buying and selling of stock which values are subject to market speculations and it's inherent variations.

Precious metals is buying and selling of rare gems whose price are also subject to market valuation with incremental variations.

International bonds prices are not only affected by market forces but also international goverments influence which causes price variations.

Fixed bonds income provided fixed income at stated periods.

This are invariably why the emphasis should be on fixed income bond.