Taking a loan for $5000 to invest in a conservative portfolio is always more risky than saving $5000 to invest in the conservative portfolio.

Question

Quizplus · Accepted Answer

Taking a loan adds an additional financial burden in the form of interest and repayment obligations, increasing the risk involved in the investment. Whereas, saving $5000 and investing it eliminates the risk of a loan repayment and its interest, making it a safer investment option.

Taking a Loan for $5000 to Invest in a Conservative