Question

Why might investors consider moving higher up the risk ladder for fixed income investments?

a.

To guarantee returns

b.

To avoid any risk

c.

To achieve capital appreciation

d.

To ensure short maturity periods

Posted under IC 89 Management Accounting

Answer: (c).To achieve capital appreciation Explanation:Moving higher up the risk ladder in fixed income investments, such as investing in bond funds and Fixed Maturity Plans (FMPs), can provide opportunities for capital appreciation, although returns are not guaranteed.

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Q. Why might investors consider moving higher up the risk ladder for fixed income investments?
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