Question

When considering Fixed Income Instruments as an asset class, what factors should influence the investor's choice of product?

a.

Historical performance

b.

Market trends

c.

Risk appetite, liquidity needs, investment horizon, and tax considerations

d.

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Answer: (c).Risk appetite, liquidity needs, investment horizon, and tax considerations Explanation:The investor's choice of Fixed Income Instrument should depend on factors such as risk appetite, liquidity needs, investment horizon, and tax considerations. Each product within the fixed income asset class has its unique features, and selecting the right one requires careful consideration of these factors.

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Q. When considering Fixed Income Instruments as an asset class, what factors should influence the investor's choice of product?

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