Capital Appreciation

C

The correct answer is (C) Aggressive strategy.

Capital appreciation is an investment objective in which an investor seeks to increase the value of their portfolio through capital gains, which means buying assets (such as stocks, mutual funds, or real estate) that are expected to increase in price over time. This objective is appropriate for investors who are willing to take on a higher level of risk in exchange for potentially higher returns.

An aggressive investment strategy typically involves investing in high-growth assets, such as small-cap stocks or emerging market funds, that may have greater volatility and risk than more conservative investments. Aggressive investors are willing to accept higher risk in the hope of achieving higher returns over the long term.

In contrast, a risk-averse strategy is characterized by a low tolerance for risk and a focus on preserving capital, rather than pursuing capital gains. This type of strategy may be more appropriate for investors who are closer to retirement or who have a shorter investment time horizon.

A possessive strategy is not a commonly used term in investment management, but it could refer to an investment approach focused on holding onto assets, rather than buying and selling them. This type of strategy may be appropriate for investors who are seeking long-term stability rather than short-term gains.

A risk acceptance strategy is also not a commonly used term, but it could refer to an investment approach that involves taking on higher levels of risk in exchange for the potential for higher returns. This would be similar to an aggressive strategy.

Overall, capital appreciation is an investment objective that is often pursued through an aggressive investment strategy, in which investors are willing to take on greater risk in the hopes of achieving higher returns.