Scenario 32: A younger client has a long time horizon and high-risk tolerance. Which asset allocation would generally be most appropriate?

Question: Scenario 32: A younger client has a long time horizon and high-risk tolerance. Which asset allocation would generally be most appropriate?

Answer options:

• 100% money market funds
• 70% bonds, 30% stocks ✅ 80% stocks, 20% bonds
• 50% cash, 50% GICs

Correct answer: 80% stocks, 20% bonds

Explanation: Clients with a long time horizon and high-risk tolerance can generally afford to take on more equity risk, as they have time to recover from market downturns and benefit from higher long-term growth potential. The correct answer is "80% stocks, 20% bonds". This capacity-fill scenario 32 reinforces the same competency for the cfp bank and follows the certified explanation standard.