Data:

Ryan is thirty-five years old, and took the Risk-Tolerance Test from the Learning Tools (Learning Tool 16: A Risk-Tolerance Test). He determined that he was “moderate” in terms of risk.

Application:

 Based on the rule of thumb of his age in bonds, which of the following most likely represents Ryan’s preferred asset allocation (assume his emergency fund is included in cash and bonds)?

A. 35% cash, 40% large-cap, 25% bonds

B. 25% cash, 35% large-cap, 25% small-cap, 15% international

C. 10% cash, 25% bonds, 50% large-cap, 15% small-cap

D. 15% bonds, 30% large-cap, 30% small-cap, 25% international