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Which of the following statements about the Asset Categories section of the lecture material are TRUE: Income asset categories mainly pay income whereas Growth asset
Which of the following statements about the Asset Categories section of the lecture material are TRUE:
- Income asset categories mainly pay income whereas Growth asset categories dont pay income and so the returns are only from capital gains.
- When investing in Growth assets, it is best to make sure that you have an investment time horizon of at least 5 years. This is because Growth assets usually have higher risk than Income assets. Investing over longer periods of time can help to manage that risk.
Neither of the statements are true (both are false)
Only statement 1 is true
Only statement 2 is true
Both statements are true (neither are false)
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