As a conservative investor, you are concerned about the preservation of capital and much less concerned with capital gains. Based on this information, you should consider investing in _____, since they are considered very safe investments.
A) government securities
B) corporate bonds
C) corporate stock
D) mutual funds

Question

Quizplus · Accepted Answer

Government securities, such as Treasury bills, notes, and bonds, are considered very safe investments because they are backed by the full faith and credit of the U.S. government. They are generally low risk, low return investments that are suitable for conservative investors who are primarily interested in preserving capital. Corporate bonds and stocks, on the other hand, carry more risk and offer the potential for higher returns, but also come with a higher level of uncertainty and volatility in the short term. Mutual funds can invest in a variety of asset classes, including stocks and bonds, so their risk level will depend on the specific investments in the fund. Some mutual funds may be suitable for conservative investors, while others may be better suited for more aggressive investors looking for higher returns.

As a Conservative Investor, You Are Concerned About the Preservation