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Which statement describes returns in the Capital Market?

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Question

Which statement describes returns in the Capital Market?

Options

  • Higher potential returns over a longer period.

  • Lower expected returns because of shorter maturity.

  • Relatively risky for both return and principal repayment.

  • Highly liquid due to an active ready market.

MCQ
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Solution

The Capital Market offers higher potential returns. These potential returns are considered over a longer period.

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