Portfolio Management Q139

139Dean Jones is 43 years old and has a secure job with an annual salary of AUD 300,000. The income is sufficient to cover his and his family’s expenses. He owns the house his family lives in and has savings of AUD 1,000,000. Jones is reluctant to invest in the stock market because he believes that stock market returns are based on luck. Furthermore, the thought of losing money causes him to have sleepless nights. Based on this information which of the following statements is most accurate?

Option : C
Explanation : Give the high income and savings, his ability to take risk is high. However, his attitude towards the stock market and the possibility of losing money indicates that his willingness to take risk is low.

Forgot your password?

I agree with the Terms.