Which of the following is not common to all investments?
A) Investors are required to pay some price to acquire them.
B) Owners are given the opportunity to receive future payments.
C) Future payments are typically risky.
D) Paying a positive rate of interest.

Respuesta :

Answer:

Option D is the correct answer

Explanation:

Investors are typically expected to part with their funds today in expectation for a future amount,hence the funds so invested are invested for speculative reasons.

Owners are given the option of future payments at redemption of the investments while some investments can be divested before maturity.

Future payments are naturally risky because investment is like two sides of a coin, it either has a positive or negative outcome such loss of the entire invested sum.

Not all investments pay positive rate of interest, the US bank deposit interest was negative during the global meltdown in 2009.

It is not a common feature in all investments that they D) Pay a positive rate of interest.

Features of investments are:

  • They require investors to pay a price to acquire them
  • They usually give owners a chance to earn future payoffs
  • They offer future payments that have risk

Some investments will pay a negative rate of interest when situations go against them and force them into making losses.

In conclusion, not all investments pay positive interest.

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