The capital formation strategy based on entirely high risk investments beneficial to investors is offers the possible huge returns on the initial investment. Thus option (A) is correct.
What is capital formation?
Capital formation refers to the accumulation of the capital in the accounting period. It includes the purchase of capital goods such as equipment's, tools, transportation assets etc.
Investment is the one way in which capital formation can be done. The investors that put their investment in the thing which gives them high rate of return is very much beneficial to them.
It involves the risk ay the same time gives you high returns. Thus option (A) is correct.
Learn more about risk here:
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