Question

What is the role of returns in investment planning?

a.

Returns determine how much money you have available for investment.

b.

Returns are the result of diversification.

c.

Returns are irrelevant in investment planning.

d.

Returns determine the rate at which your wealth from investments grows over time.

Answer: (d).Returns determine the rate at which your wealth from investments grows over time. Explanation:Returns play a crucial role in investment planning as they determine the rate at which your wealth from investments grows over time, which is a key factor in financial goal achievement.

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Q. What is the role of returns in investment planning?

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