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An investor has a long-term investment time horizon, no liquidity needs and is very risk averse. Your main concern when making a recommendation to this client is:

asked
User Dexture
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1 Answer

3 votes

Answer:

Safety of principal

Step-by-step explanation:

PRINCIPAL

SAFETY OF PRINCIPAL is the probability or likelihood that the main money invested or the money which was paid for a specific investment will be returned to the investor.

Secondly SAFETY OF PRINCIPAL help to give the assurance that a person's or an individual principal or their initial investment will tend to remain the same over the life of the investment or period of the investment which is why Safety of principal can be achieved by carefully carryingout the review of both the economic and industrial trends before deciding to choose what type of investment to go for.

Therefore if an investor has a long-term investment time horizon in which their is no liquidity needs and is very risk averse.

My main concern when making a recommendation to this client is: SAFETY OF PRINCIPAL.

answered
User Tim Richard
by
8.6k points
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