Which of the following has the hightest return capacity
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Equity
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Mutual Funds
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PPF
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All of the above
A
Correct answer
Explanation
Equity has the highest return potential among these options. Stocks can deliver unlimited upside through capital appreciation and dividends. Mutual Funds have lower return capacity due to expense ratios and diversification (which caps upside). PPF offers fixed, government-guaranteed returns with a defined ceiling. Risk and return are positively correlated.