A client with a long investment horizon and high risk tolerance would typically be suitable for an asset allocation leaning heavily towards:

Question: A client with a long investment horizon and high risk tolerance would typically be suitable for an asset allocation leaning heavily towards:

Answer options:

• Cash and short-term government bonds.
• High-quality corporate bonds. ✅ Growth-oriented equities and potentially some alternative investments.
• Mortgage-backed securities and preferred shares.

Correct answer: Growth-oriented equities and potentially some alternative investments.

Explanation: Clients with a long investment horizon can absorb short-term market fluctuations, and high risk tolerance indicates a willingness to take on more risk for potentially higher returns. This profile suits growth equities and certain alternative investments that offer higher potential returns but also higher volatility.