Question

7 norton owns a universal life insurance policy for which he pays more than the required minimum premium amount. when it comes to his level of risk tolerance, norton is risk - averse. he is not open to investments that can decrease in value and only prefers guaranteed investments. which of the following investments would be best suitable for norton?
a. index fund investments
b. daily interest accounts
c. mutual fund investments
d. equity funds

Explanation:

Norton is risk - averse and wants guaranteed investments. Index funds, mutual funds, and equity funds are subject to market risks and their values can decrease. Daily interest accounts are typically low - risk and offer guaranteed returns (or at least very stable returns with minimal risk of value decrease), so they are suitable for a risk - averse investor like Norton.

Answer:

b. Daily interest accounts