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Ch.12 · Matching Schemes to Investor Profiles · medium

Which of the following best describes a 'medium-term' investment horizon for goal-based planning?

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EXPLANATION

Medium-term investment horizon is generally defined as 3 to 7 years. Short-term is under 3 years (debt/hybrid appropriate); medium-term suits balanced/hybrid or large-cap equity with some debt; long-term (7+ years) is best suited for pure equity exposure.

A.3 to 7 years [✓ Correct]

B.1 to 3 years

C.Less than 1 year

D.More than 10 years

EXPLANATION

Medium-term investment horizon is generally defined as 3 to 7 years. Short-term is under 3 years (debt/hybrid appropriate); medium-term suits balanced/hybrid or large-cap equity with some debt; long-term (7+ years) is best suited for pure equity exposure.

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