Day: February 23, 2025

Alex has a short to medium-term financial objective he wishes to achieve and has money to invest in respect of achieving this objective.

Which of the following statements about priority and related risk and return is true in this situation?

Select ONE answer:

1. If it is a high priority the individual will want high risk and high return
2. If it is a low priority the individual will want low risk and would accept low return
3. If it is a high priority the individual will want low risk and would accept low return
4. If it is a low priority the individual will not bother to invest

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > An individual with a high priority short to medium-term financial objective and money to invest in respect of this will want to minimise risk and will accept a lower return as a result.
4. Not correct

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