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Which of the Following Statements Is Correct

question 19

Multiple Choice

Which of the following statements is correct?


Definitions:

Investment Objectives

The financial goals or desired outcomes that motivate an individual or entity to invest, which guide the selection of investment strategies and asset classes.

Risk Tolerance

An investor's capacity or willingness to endure market volatility and potential for loss in exchange for the possibility of higher returns.

Return Requirement

The minimum amount of profit an investor expects to earn from an investment, taking into account various factors such as risk tolerance and market conditions.

Passive Core

An investment strategy that involves holding a diversified portfolio of securities for long-term investment with minimal trading.

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