CFA Practice Question

CFA Practice Question

The ______ investment strategy means investors want the portfolio to concentrate on generating income rather than capital gains.
A. capital preservation
B. capital appreciation
C. current income
Explanation: This is a relatively low-risk strategy chosen by investors who want to supplement their earnings with income generated by their portfolio to meet living expenses.

User Contributed Comments 6

User Comment
lwang014 capital preservation is for the "against-inflation" purpose?
Rguerra why not B?
danlan It is for income generation rather than capital preservation.
dimanyc capital preservation is investment in TIPS.
dlukas capital preservation could include money markets. Current income specifically means you want securities that you don't have to liquidate in order to convert some of your returns into cash.
GBolt93 capital appreciation would be capital gains. E.g. high growth rather than high dividends or fixed income
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