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Series 7: Investment Information & Recommendations
Series 7 practice questionhardPortfolio Management 647

A customer with a long time horizon and high risk tolerance would generally be expected to have a portfolio with:

  1. Aa larger allocation to equities than a conservative retiree✓ Correct answer
  2. Bonly money market instruments
  3. Cno diversification
  4. D100% in one industry
Explanation

Why Aa larger allocation to equities than a conservative retiree

Longer time horizons and higher risk tolerance often support greater exposure to equities. That does not eliminate the need for diversification and suitability review.

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