Question

According to the financial planning pyramid, an investor who holds predominantly preferred shares and Government of Canada bonds in his portfolio, would be considered what type of investor?

Answer 1

Investors with a preference for preferred shares and government bonds are usually conservative, focusing on income generation and capital preservation.

Step-by-step explanation:

Based on the financial planning pyramid, an investor who holds predominantly preferred shares and Government of Canada bonds would be classified as a conservative or income-focused investor. Preferred shares provide fixed dividends, while government bonds are considered low-risk with stable returns. These types of investments usually appeal to those who prioritize preserving their initial investment capital and who seek a steady stream of income, often consistent with goals during the wealth preservation or retirement stages of investment planning.