SIE Exam Question 174: Answer and Explanation

Question: 174

Which of the following investments would be the least suitable for an elderly investor who is risk averse?

• A. Municipal bond
• B. Corporate bond
• C. Mutual fund
• D. Common stock

Correct Answer: D

Explanation:

A common stock would be the least suitable investment for an elderly investor who is risk averse. While municipal bonds, corporate bonds, and mutual funds can lose their value, they are statistically less volatile than common stock.