To answer this question, we need to understand the differences between long investment time horizons and short investment time horizons.
Investors with long investment time horizons typically have more time to ride out market fluctuations and are generally more focused on long-term growth. They can afford to have their funds tied up in investments for longer periods and may prioritize capital appreciation over immediate liquidity.
On the other hand, investors with short investment time horizons have less time to recover from potential losses and may need access to their funds quickly. They are typically more concerned with preserving capital and may prioritize liquidity over potential long-term growth.
With this understanding, let's go through each option to determine the most likely requirement for investors with short investment time horizons:
Option A) Less liquidity and less emphasis on capital appreciation - This option is incorrect because investors with short investment time horizons generally require more liquidity, not less.
Option B) More liquidity and less emphasis on capital appreciation - This option is correct because investors with short investment time horizons typically need more liquidity and are less focused on capital appreciation.
Option C) Less liquidity and greater emphasis on capital appreciation - This option is incorrect because investors with short investment time horizons generally require more liquidity, not less, and are less focused on capital appreciation.
Option D) None of the above - This option is incorrect because option B is the correct answer.
Therefore, the correct answer is B) more liquidity and less emphasis on capital appreciation. This option aligns with the requirements of investors with short investment time horizons.