Question
Parker is 21 years old, has weak financial stability, a long-time horizon, and a high risk tolerance. How should Parker invest?
Select a response.
More stocks than bonds and cash equivalents
More cash equivalents than bonds and stocks.
More bonds than stocks and cash equivalents,
Select a response.
More stocks than bonds and cash equivalents
More cash equivalents than bonds and stocks.
More bonds than stocks and cash equivalents,
Answers
GPT-4o mini
Given Parker's situation—being 21 years old, having weak financial stability, a long investment horizon, and a high risk tolerance—it would be most appropriate for him to invest:
**More stocks than bonds and cash equivalents.**
This strategy aligns with his long time horizon and high risk tolerance, allowing him to potentially benefit from higher returns associated with equities over time while being able to ride out market volatility. While it's important for him to keep some cash equivalents for emergencies, the majority of his investments should be in stocks to maximize growth potential.
**More stocks than bonds and cash equivalents.**
This strategy aligns with his long time horizon and high risk tolerance, allowing him to potentially benefit from higher returns associated with equities over time while being able to ride out market volatility. While it's important for him to keep some cash equivalents for emergencies, the majority of his investments should be in stocks to maximize growth potential.