Q41
Investment in which of the following is most risky?
A.
Equity shares
AnswerB.
Preference shares
C.
Debentures
D.
Land
Answer: Option A
Solution
Answer: Option A
Solution:
Investment in Equity shares is most risky. The higher the volatility of a stock, or any asset, the higher its risk. Unit trusts that invest only in equities are higher risk than those that invest in other assets. Their prices move further and the chance of loss is higher.