Question

A customer, age 51, has a 20 year investment time horizon, a moderate risk tolerance, and is looking for investments that provide both income and growth. The best recommendation would be:

Answer 1

Answer:

large capitalization growth stocks

Explanation:

Out of the four possible options, large capitalization growth stocks are the only option that provides potential growth and receives income from dividends.

Money market instruments are extremely safe investments, but they yield a very low return. This type of investment is suitable for investors that wish to preserve their capital.

Mutual funds is not a very specific answer, since it can apply to several types of investments.

Bonds only provide income, but they do not provide growth (fixed coupon rate).