Mr. Davis, a single 30-year-old, has just started his first professional job and wants to begin saving for a down payment on a home in 5-7 years, as well as for retirement. His risk tolerance is moderate, leaning aggressive for his retirement savings. Which of the following best describes his portfolio goals?

Question: Mr. Davis, a single 30-year-old, has just started his first professional job and wants to begin saving for a down payment on a home in 5-7 years, as well as for retirement. His risk tolerance is moderate, leaning aggressive for his retirement savings. Which of the following best describes his portfolio goals?

Answer options:

• Primarily capital preservation with high liquidity.
• Short-term income generation with aggressive growth for all assets. ✅ A combination of short-to-medium term growth for a specific goal (house) and long-term aggressive growth for retirement.
• Speculative trading for quick profits.

Correct answer: A combination of short-to-medium term growth for a specific goal (house) and long-term aggressive growth for retirement.

Explanation: Mr. Davis's situation indicates multiple goals: a distinct short-to-medium term goal (house down payment) requiring growth within that timeframe, and a long-term goal (retirement) with a more aggressive growth objective due to his age and risk tolerance.