24
practice testMultiple Choice

Practice Test

Question 24 • Personal Finance

Part A: Which investment fits a long-term, high-risk strategy?

Answer
A
cash holdings
B
diversified stock portfolio
C
savings account
D
short-term bond

Explanation

A diversified stock portfolio is the best fit for a long-term, high-risk strategy. Stocks can rise and fall significantly in the short term, but holding a diversified mix over many years can offer greater growth potential. Cash holdings, savings accounts, and short-term bonds are generally lower-risk choices.

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