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When investors are young, their investment portfolio should typically be dominated by common stocks because, due to long time horizons, young investors can generally afford

When investors are young, their investment portfolio should typically be dominated by common stocks because, due to long time horizons, young investors can generally afford the additional risk of common stocks. As investors near retirement, their asset allocation should rapidly shift to all fixed income securities to provide for income and to mitigate against the risk of the equity markets

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