Ch.12 · Matching Schemes to Investor Profiles · easy
Which of the following would typically indicate a CONSERVATIVE risk profile?
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EXPLANATION
A 62-year-old retiree with fixed income and no liabilities typifies a conservative profile — the investment horizon is shorter, capital preservation is more important than growth, and there is limited ability to recover from a large loss. Conservative investors are best served by debt-oriented or hybrid conservative funds.
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