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:
- Aa larger allocation to equities than a conservative retiree✓ Correct answer
- Bonly money market instruments
- Cno diversification
- D100% in one industry
Explanation
Why A — a 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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