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Which statement describes investing for growth?

A. I'm willing to take big risks and pay very close attention to buy low and sell high for quick profits.
B. I want an attractive return over the long haul without having to constantly track my investments.
C. I want to increase my wealth fast and am willing to take risks.
D. I want a steady flow of income, even though the value of the investments won't increase much.
E. I'm willing to risk my time and money hunting for undervalued stocks that might become profitable.


Sagot :

Final answer:

Investing for growth involves prioritizing long-term wealth accumulation by accepting risks and aiming for capital appreciation.


Explanation:

Growth: A growth-oriented investor aims to maximize long-term potential for growth of principal, tolerating large short-term price fluctuations with a focus on long-term investment horizon.

Example: 80% stocks and 20% bonds allocation illustrates a growth-oriented investment strategy that prioritizes long-term growth potential over current income.

Investing for growth: Investors aiming for growth focus on maximizing wealth over time by accepting risks and seeking long-term capital appreciation.


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