Disadvantages of the Capital Retention Approach Include Which of the Following

question 28

Multiple Choice

Disadvantages of the capital retention approach include which of the following?
I.Assets are often liquidated too quickly.
II.It underestimates the amount of life insurance needed.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Total Return

The overall financial gain or loss on an investment, including both capital appreciation/depreciation and income like dividends and interest over a given time period.

U.S. Dollars

The official currency of the United States, widely used as a global reserve currency and standard for international transactions.

International Stocks

Shares of companies based outside of an investor's home country, offering diversification benefits.

Portfolio Risk

The potential for loss due to the variability of returns from the various securities in a portfolio.