A comparison of two portfolios shows the following asset allocation:
Portfolio A: 70% stocks; 20% bonds; 10% money market
Portfolio B: 30% stocks; 40% bonds; 30% money market
Which of the following statements best describes the portfolios?
Portfolio A would be more appropriate for a person in their 60s than Portfolio B because it will give them higher returns.
Portfolio B would be more appropriate for a person in their 30s than for a person in their 50s.
Portfolio A would be more appropriate for a person in their 30s than a person in their 50s.
Portfolio B is recommended for most people because it is lower risk.
