Which of the following instruments do not contain Zero

Q: Answer-Which of the following instruments do not contain Zero Risk?

The features of Zero Risk are i It does not have any uncertainty with it like in case of bonds as interest is known ii There is no variation in net cash flow, like in case of term deposits iii Return on such investment would be lower like in Govt bonds

Risk?

A Investment in Shares Correct Answer Incorrect Answer

B Investment in Bonds-and Debentures Correct Answer Incorrect Answer

C Investment in Term Deposits Correct Answer Incorrect Answer

D Investment in Government Bonds Correct Answer Incorrect Answer

E none of the above Correct Answer Incorrect Answer

Solution

The features of Zero Risk are: (i) It does not have any uncertainty with it (like in case of bonds as interest is known) (ii) There is no variation in net cash flow, (like in case of term deposits) (iii) Return on such investment would be lower (like in Govt bonds)

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