what is one major advantage of a capital formation strategy that focuses only on high-risk investments

Incomplete question. Options:

A. It protects the initial investment from losing any of its value.

B. It is a highly predictable strategy that guarantees stable growth.

C. It offers the possibility of extremely large returns over time.

D. It is the most diversified strategy for capital investment.

C. It offers the possibility of extremely large returns over time.

Explanation:

It is noteworthy that a company that employs a capital formation strategy that focuses mainly on high-risk investments is seeking the major advantage of possibly getting extremely large returns over time from the investment.

Remember, with high-risk investments anything is possible, and so the high-returns is the underlying motivation that reduces any investor concerns of the risks.

the answer is c.

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