**ECONOMICS** HURRY PLZ What is one major advantage of a capital formation strategy that focuses
only on high-risk investments?
O A. It protects the initial investment from losing any of its value.
O B. It is a highly predictable strategy that guarantees stable growth.
O C. It offers the possibility of extremely large returns over time.
O D. It is the most diversified strategy for capital investment.

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

Explanation:

Capital Formation refers to the net accumulation of capital of a country calculated by the measure of the unconsumed, production output and importation which are not exported in a given accounting period, and are added to the county's capital goods stock

Capital formation focusing on high-risk investment involves capital formation which investments that involves a risk of losing the initial investment, however, the liability of the country is limited to the initial amount invested, with the possibility of making large gains from the investment with time.

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