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meriva
3 years ago
15

what is one major advantage of a capital formation strategy that focuses only on high-risk investments

History
1 answer:
Ksivusya [100]3 years ago
5 0

Incomplete question. Options:

A. It protects the initial investment from losing any of its value.

B. It is a highly predictable strategy that guarantees stable growth.

C. It offers the possibility of extremely large returns over time.

D. It is the most diversified strategy for capital investment.

<u>Answer:</u>

<u>C. It offers the possibility of extremely large returns over time.</u>

Explanation:

It is noteworthy that a company that employs a <u>capital formation strategy</u> that focuses mainly on high-risk investments is seeking the major advantage of possibly getting <u>extremely large returns over time</u> from the investment.

<em>Remember</em>, with high-risk investments <em>anything</em> is possible, and so the high-returns is the underlying motivation that reduces any investor concerns of the risks.

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