Mary has a portfolio consisting primarily of small cap stocks and high yield bonds. What is her most likely investment objective?

Mary's portfolio, which consists primarily of small cap stocks and high yield bonds, suggests that her most likely investment objective is speculation. Small cap stocks are typically associated with higher growth potential but also higher volatility and risk, indicating a willingness to accept those risks in hopes of achieving substantial capital appreciation. High yield bonds, on the other hand, offer greater returns compared to investment-grade bonds but also come with increased credit risk.

Investing in such volatile and potentially higher-reward assets aligns closely with a speculative approach, which is centered around seeking significant returns, even at the risk of loss. This contrasts with other investment objectives like income, which would primarily focus on generating regular cash flows without as much emphasis on growth potential; capital preservation, which aims to protect the value of investments; and safety, which seeks stability and a low risk of loss. Therefore, the combination of small cap stocks and high yield bonds in Mary's portfolio indicates an orientation toward taking risks for the chance of greater rewards, making speculation her most likely investment objective.