MENU
___________ means that investors want to minimize their risk of loss, usually in real terms: They seek to maintain the purchasing power of their investment. In other words, the return needs to be no less than the rate of inflation.
Suggested Answer: B
Get Premium CTFA Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
40 comments · newest first
VE
Veronika
11 months ago
I thought capital budgeting was more about planning, not this.
JO
Joseph
11 months ago
Definitely A! Keeping purchasing power is a must.
AL
Alberta
12 months ago
Wait, is capital depreciation really a thing? Sounds off.
MY
My
12 months ago
Totally agree, inflation can really eat into returns.
AN
Andra
12 months ago
Capital preservation is key for long-term stability!
SH
Shawna
1 year ago
I keep mixing up capital preservation and capital budgeting; I hope I don't confuse them on the exam!
NI
Nicolette
1 year ago
I feel like I've seen a question like this before, and it was definitely about keeping up with inflation, so A sounds right to me.
HE
Helaine
1 year ago
I'm not entirely sure, but I remember something about capital appreciation being more about growth rather than just preserving value.
GL
Glenn
1 year ago
I think the answer might be A, capital preservation, since it relates to minimizing risk and maintaining purchasing power.
BA
Barb
1 year ago
Hmm, I'm a little unsure about this one. The question mentions that the risk management plan is critical, but it doesn't explicitly state when it's created. I'll have to think this through carefully before selecting an answer.
RO
Rory
1 year ago
I have a nagging feeling that there could be a compilation error with the way `fourth` and `fifth` are initialized since they rely on the `list` and `vector`.
KI
Kimbery
1 year ago
Okay, let me think this through step-by-step. The key is understanding how the default scheduler works and the different queue types. I've got this!
DE
Deandrea
1 year ago
I remember studying cash transaction exemptions, but I'm not entirely sure if the 30 days is too short for a valid exemption.
MI
Mitsue
1 year ago
Capita budgeting? I thought we were talking about investments, not the Roman Empire.
KA
Katina
1 year ago
C) Capital depreciation
LE
Leatha
1 year ago
B) Capital appreciation
DE
Dean
1 year ago
A) Capital preservation
CA
Carla
1 year ago
Capital depreciation? Guess I should just throw my money into the nearest volcano and call it a day.
CR
Cristina
1 year ago
Investors aim for capital preservation to protect their investments from losing value.
CR
Cristina
1 year ago
Capital preservation is all about minimizing risk and maintaining purchasing power.
CR
Cristina
1 year ago
No, that's not the right option. It's actually capital preservation.
ME
Merlyn
1 year ago
Capital appreciation? Looks like I need to start a cryptocurrency farm in my basement.
GO
Goldie
1 year ago
That's a good idea, but remember to diversify your portfolio.
MY
Myrtie
1 year ago
Capital appreciation? Maybe I should consider investing in stocks.
CO
Corrinne
1 year ago
Yes, investors want to minimize risk and maintain purchasing power.
KE
Keva
1 year ago
Capital preservation? That sounds like a safe bet.
CA
Cary
1 year ago
D) Capital budgeting
JO
Josefa
1 year ago
C) Capital depreciation
MA
Maia
1 year ago
B) Capital appreciation
DO
Dolores
1 year ago
A) Capital preservation
BA
Barbra
1 year ago
That's right, they seek to maintain the purchasing power of their investment.
HE
Hester
1 year ago
B) Capital appreciation
AR
Arletta
1 year ago
Yes, investors want to minimize their risk of loss.
CH
Cherry
1 year ago
A) Capital preservation
IZ
Izetta
1 year ago
Capital preservation? Sounds like I need to wrap my investments in bubble wrap!
ID
Idella
1 year ago
User1
JE
Jestine
1 year ago
User2
GA
Gail
2 years ago
I agree with A. It's important to minimize risk and maintain purchasing power.
AD
Adolph
2 years ago
I think it's A too. Investors always want to protect their capital.
PA
Pauline
2 years ago
A) Capital preservation