FINRA Series 7 quiz

An investor seeks growth potential and income from a variety of asset classes for their portfolio. If you can only recommend one security, which of the following is the best choice?

Balanced funds invest in a mix of stocks and bonds (different asset classes). Stocks are purchased primarily for their growth potential, while bonds are purchased primarily for their income potential. Growth and income funds invest in stocks only, which does not match the investor’s desire for multiple asset classes. Money market funds and US Government bond funds primarily offer income potential, not growth potential.