Question

An asset allocation of 95% stocks and 5% bonds is considered ________ risk.

a.conservative low
b.moderate
c.moderate high
d.aggressive high
e.zero

Answer 1

For the answer to the question above, an asset allocation of 95% stocks and 5% bonds is considered Aggressive high risk.
Aggressive high risk refers to the type of investment that aimed to obtain as much profit as possible while risking the loss of a huge chunk of investment at the same time. We could see this by seeing 95 % of stocks allocation. Stocks are considered a high-risk high return type of investment because the stocks' prices are really volatile and really sensitive to the market's condition.