SIE Exam Question 26: Answer and Explanation

Question: 26

A corporate bond would be least suitable for which of the following investors?

• A. A 25-year-old interested in speculative investments
• B. A 25-year-old with an investment objective of growth and income
• C. A retired individual with an investment objective of growth and income
• D. A retired individual with an investment objective of income

Correct Answer: A

Explanation:

A corporate bond would be least suitable for a 25-year-old interested in speculative investments. Again, corporate bonds, and bonds in general, are better suited for conservative investors who are seeking steady, predetermined income.