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Multiple Choice

Which of the following is NOT one of the three investment considerations?

Investing centers on three main considerations: safety, liquidity, and yield. Safety covers the risk of losing some or all of your money, liquidity is how easily you can convert an investment to cash without a big price drop, and yield is the income or return you expect from the investment. Tax efficiency, while it affects how much you keep after taxes, is a tax planning factor rather than one of these intrinsic investment characteristics. It influences after-tax returns but isn’t one of the three fundamental investment considerations.

Investing centers on three main considerations: safety, liquidity, and yield. Safety covers the risk of losing some or all of your money, liquidity is how easily you can convert an investment to cash without a big price drop, and yield is the income or return you expect from the investment. Tax efficiency, while it affects how much you keep after taxes, is a tax planning factor rather than one of these intrinsic investment characteristics. It influences after-tax returns but isn’t one of the three fundamental investment considerations.