📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

  • google app store apple app store
  • ✖

      Question

      Which of the following instruments do not contain Zero

      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)

      Practice Next

      Relevant for Exams:

      ask-question