For an Investor with a Time Horizon of Four Years

Multiple Choice

For an investor with a time horizon of four years and higher risk tolerance, an appropriate asset allocation strategy would be

A) 100 percent cash.
B) 30 percent cash, 50 percent bonds, and 20 percent stocks.
C) 20 percent cash, 40 percent bonds, and 40 percent stocks.
D) 10 percent cash, 40 percent bonds, and 50 percent stocks.
E) 100 percent bonds.