laysha180
contestada

What is one major disadvantage of a capital formation strategy that focuses
only on high-risk investments?
A. It is only available to investors who are nearing retirement.
B. It offers a very low rate of return on the investment over time.
C. It requires investors to greatly diversify their investments.
D. It increases the chance that the investment will lose all value.

Respuesta :

zacmiller27571
It appears as though D is the correct answer

(Though (as a sub note) diversification of portfolios is a common method to reduce risk)
Parrain

One disadvantage of focusing on high-risk investments is that D. It increases the chance that the investment will lose all value.

What is a disadvantage of high-risk investments?

High risk investments may provide a lot of return, but they also increase the chances that an investment will lose all of its value.

This is because these investments are quite risky and a certain change in the market could lead to them losing significant value.

Find out more on high-risk investments at https://brainly.com/question/11514232.

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