Question

In: Finance

Which of the following is/are the most important characteristics of an investment?

  1. Which of the following is/are the most important characteristics of an investment?
    1.      Marketability
    2.     Term
    3.    Return
    4.    Risk
    5.     Liquidity

 

  1. i. and v.
  2. i. and ii.
  3. iii. and v.
  4. iii. and iv.

Solutions

Expert Solution

  1.     iii. and iv.

Return and risk are the two most important characetristics of an investment. Investors like return but dislike risk. Therefore, risk averse investors will check how much risk they are willing to take for a range of return.


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