Which statement about investment objectives is FALSE?

Prepare for the Insurance Commission (IC) Variable Life Licensing Test. Boost your confidence with our comprehensive quiz featuring flashcards and multiple-choice questions. Each question comes with detailed hints and explanations. Excel in your exam!

The statement that investors seek high returns through fixed deposits is considered false because fixed deposits typically provide lower, guaranteed returns compared to other investment options such as stocks or bonds. Investors who are looking for high returns generally pursue investments with higher risk, whereas fixed deposits are a low-risk investment option. They are favored by conservative investors who prioritize capital preservation and stability over the potential for high returns.

In contrast, the other statements accurately reflect the principles of investment objectives. It is crucial for investments to align with an individual's expectations and risk tolerance to ensure that their financial goals are met. Moreover, fixed deposits are generally characterized as low-volatility investments, meaning they do not fluctuate widely in value, which contrasts with the nature of more volatile investments like stocks. Lastly, the expectation of guaranteed returns is a common objective in various investment strategies, suggesting that many investors seek stability in their returns, similar to what fixed deposits provide.

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