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Your client, Rex, treats wages differently from bonuses when determining his saving and investment goals. As a result, he invests any available after - tax
Your client, Rex, treats wages differently from bonuses when determining his saving and investment goals. As a result, he invests any available aftertax wages in lowrisk investments while investing his bonuses in highrisk alternatives. How could you best explain investing in this manner to Rex?
A
Commend Rex on choosing different investments to achieve diversification.
B
Confirm to Rex that this strategy will lead to higher returns with minimal risk.
C
Demonstrate to Rex the importance of purchasing investments that are highly correlated with one another.
D
Advise Rex to look at all investments as if they are part of the same portfolio.
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