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Ronald, a 65-year-old professional, has lost quite a bit of his invested money in the last three months. What strategy may his financial advisor

suggest?

a

Ob

Shift his portfolio to a more moderate approach.

Choose a high-risk portfolio to recover the losses.

Watch the news to learn about best investments.

Ос

Invest only in international companies

Sagot :

Answer:

The strategy that his financial advisor may suggest is:

Shift his portfolio to a more moderate approach.

Step-by-step explanation:

The strategy that got Ronald to this position must have been a high-risk portfolio.  Therefore, his adviser should convince him to pursue a more moderate approach to reduce the losses and ensure recovery.  However, it is known that high-risk investments attract higher returns than moderate-risk investments.  The loss exposure that Ronald has experienced lately may also be cyclical, in which case, it may be more prudent to maintain a long position, as recovery will soon be on the corner.

Answer: A- shift his portfolio to a more moderate approach

Step-by-step explanation:

It’s a simple strategy

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