Respuesta :
An investment that Garrett thinking about purchasing is (C) U.S. securities and conservative mutual funds.
What is an investment pyramid?
- An investment pyramid, also known as a risk pyramid, is a portfolio strategy that allocates assets based on their relative risk levels.
- In this technique, the risk of an investment is determined by the variance of the investment return or the possibility that the investment may lose a significant amount of value.
What are U.S. securities and conservative mutual funds?
- The United States Securities and Exchange Commission (SEC) is an independent federal government body established in the aftermath of the 1929 Wall Street Crash.
- The SEC's principal mission is to enforce the law against market manipulation.
- Balanced funds include conservative mutual funds.
- When you invest in them, money is put into debt instruments.
- Around 75% to 90% of the investment is in debt instruments, with the remaining 10% to 25% in equity.
- A conservative fund is appropriate for someone with a low-risk tolerance.
As the definition says, a conservative fund is appropriate for someone with a low-risk tolerance.
Therefore, an investment that Garrett thinking about purchasing is (C) U.S. securities and conservative mutual funds.
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Correct question:
Garrett Jennings is thinking about buying an investment that represents safety and income within the investment pyramid. Which investment is Garrett thinking about purchasing?
(A) Speculative stocks, options, and commodities.
(B) Growth stocks and rental property.
(C) U.S. securities and conservative mutual funds.
(D) CDs and U.S. government bonds.
(E) All of these are appropriate for safety and income.