Accounts & CustomersQuestion 79 of 125
A customer's investment objective of 'capital preservation' would best be served by recommending:
a.High-quality short-term debt instruments and money market securities
b.Speculative small-cap growth stocks
c.Uncovered option writing
d.Highly leveraged limited partnerships
Explanation
A capital preservation objective prioritizes protecting principal over growth, favoring high-quality, short-term, liquid instruments such as Treasury bills and money market securities. Speculative equities and leveraged or uncovered option strategies carry too much risk of loss for this objective.
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