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Question

Equity shares are suitable for investors who are willing to assume risk for ________ returns.
  1. Lower
  2. Higher
  3. Medium
  4. Equal

A
Lower
B
Higher
C
Medium
D
Equal
Solution
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Equity shares represent the ownership of the company. Equity share holders do not get a fixed dividend but are paid on the basis of earnings by the company. They enjoy the rewards as well as bear the risks of theownership. Hence, Equity shares are suitable for investors who are willing to assume risk for higher returns.

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