Series 7 practice questioneasyCustomer Profiles — Investment Objectives
A customer states that her primary goal is to protect her principal while generating modest income. Which investment objective best describes her needs?
- ASpeculation
- BGrowth
- CCapital preservation and income✓ Correct answer
- DAggressive growth
Explanation
Why C — Capital preservation and income
Capital preservation and income is the objective for investors who prioritize protecting their principal while earning a steady, modest return. This is typically associated with conservative investments such as Treasury bonds, money market funds, and high-grade corporate bonds.
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