QUESTION IMAGE
Question
question 5 of 6
your time horizon is ______________.
select a response.
○ your ability to comfortably pay all your bills
○ the same as your age.
○ how comfortable you feel taking the risk of losing your money.
○ how long you plan to keep your investments.
Brief Explanations
To determine the correct answer, we analyze each option:
- "your ability to comfortably pay all your bills" refers to financial stability or cash flow, not time horizon.
- "the same as your age" is incorrect as time horizon is about investment duration, not correlated with age in this way.
- "how comfortable you feel taking the risk of losing your money" is risk tolerance, not time horizon.
- "how long you plan to keep your investments" matches the definition of time horizon in finance (the period an investor intends to hold an investment).
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D. how long you plan to keep your investments.