9
QuizMultiple Choice

3.2 Principles of Financial Planning

Question 9 • Personal Finance - EL3403

To assess the risk and return involved in a purchase decision, which practical questions should a potential buyer ask? Select three options.What can go wrong?What are my friends buying?How will it affect my social status?What is the likely return?Is the risk worth the return?

Answer
A
What can go wrong?
B
What are my friends buying?
C
How will it affect my social status?
D
What is the likely return?
E
Is the risk worth the return?

Explanation

A buyer assessing risk and return should consider what could go wrong, what return is likely, and whether that return justifies the risk. These questions directly weigh possible losses against expected gains. What friends are buying and how a purchase affects social status do not assess its financial risk or return.

AI-written and checked against the verified answer.

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