FINRA Series 6

Category - Series 6

Which of the following investor characteristics is inconsistent with an aggressive investment strategy?

I. short investment horizon
II. high risk tolerance
III. young
  1. I and II
  2. I, II, and III
  3. I only
  4. III only
Explanation
Answer: C - The investor characteristic that is inconsistent with an aggressive investment strategy is a short investment horizon. The shorter the investment horizon, the less aggressive the investment strategy should be, all else equal, because a shorter investment horizon means the investor has less opportunity to ride the up-and-down waves of the market.
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