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Question : 12
Total: 45
Statement - I: Capital market instruments are considered riskier both with respect to returns and principal repayment.
Statement - II : Capital market investment generally yields a higher return for investors.
Choose the correct option from the options given below :
Statement - II : Capital market investment generally yields a higher return for investors.
Choose the correct option from the options given below :
Solution:
(c) Both the statements are true.
Statement I is true because capital narket instruments are subject to market fluctuations and changes in interest rates, which make them risky with respect to returns and principle repayment. Statement II is also true because capital market investments generally offer higher returns but come with higher risk.
Statement I is true because capital narket instruments are subject to market fluctuations and changes in interest rates, which make them risky with respect to returns and principle repayment. Statement II is also true because capital market investments generally offer higher returns but come with higher risk.
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