After Hannah chose her investment, she vowed to never look at the stock until retirement. What is the best assessment of this decision?

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Explore the essentials of personal finance and master the Time Value of Money with our engaging quiz. Test your knowledge with interactive flashcards and in-depth multiple-choice questions. Prepare effectively and ace your test with comprehensive hints and explanations!

The decision to never look at the stock until retirement lacks a proactive approach that is often necessary for successful investment management. Regularly reviewing one’s investments is crucial because it allows an investor to stay informed about market conditions, company performance, and economic changes that can affect the value of investments. By ignoring the investment, Hannah may miss opportunities to rebalance her portfolio, respond to adverse events, or take advantage of better-performing options. Sound investment strategies typically include regular assessments and adjustments to navigate market fluctuations and align with long-term financial goals. Therefore, the decision to neglect oversight can lead to potential oversights that are detrimental to overall investment success.

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