Question

Low return investments are sometimes a better option than high return investments because :

Answer:
D.) They are less likely to cause the investor to lose money.
Explanation:
Its on ApX

Answer 1

Answer: They are less likely to cause the investor to lose money.

Step-by-step explanation:

Answer 2

Low return investments are sometimes a better option than high return investments because :

Answer:

D.) They are less likely to cause the investor to lose money.

Step-by-step explanation:

The above assertion depends on the risk appetite of the investor concerned. Another investor with high risk profile may prefer a high risk, high return investment to a low return investment. Risk cannot be removed from the return of an investment because there is a trade-off. The higher the risk involved in an investment, the higher the expected returns. The converse is also true. What decides the chosen option is the investor's risk appetite and the availability and type of investments.