Question

question 7 / 10
someone is retiring next year. what would be an appropriate amount of risk to take with their investments?
a. highest risk, highest growth
b. medium risk, medium growth
c. lower risk, lower growth
d. no risk. just savings accounts.

Explanation:

When someone is retiring soon (next year), they need to preserve their capital as they will rely on it for income. High - risk investments (option A) could lead to significant losses just before retirement. Medium - risk (option B) still has more volatility than needed. Option D's "no risk" with only savings accounts is too conservative in terms of growth over time (and savings accounts have very low growth). Lower - risk investments (like bonds, stable funds) offer lower risk of loss while still providing some growth, which is appropriate for someone about to retire.

Answer:

C. Lower risk, lower growth