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Unformatted text preview: g goal is, the more risk you can afford to take. The logic is that if your investment performs poorly for a few years, you will have more time to make it up. For short‐term goals, you should primarily be investing in CD’s and low‐risk bonds. For middle‐term goals, you should have a balanced portfolio with a greater emphasis on lower‐ risk assets For long‐term goals, you should predominantly be invested in stocks. Capacity for Risk Other factors affect your ability to handle risk. For example, if you have a very...
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This document was uploaded on 03/05/2014 for the course FIN 352 at CSU Northridge.

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