Multiple choice

Jacob recommends of the following risk allocation for a low risk portfolio:

  1. 50% govt. securities fund + 50% money market funds

  2. 50% govt. securities fund + 50% index fund

  3. 50% govt. securities fund + 50% international funds

  4. 50% govt. securities fund + 50% aggressive growth funds

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A low-risk portfolio should prioritize capital preservation and stable returns. Government securities funds provide safety, while money market funds offer liquidity and low volatility, making this 50-50 allocation appropriate for conservative investors seeking minimal risk.