Question:
Which of the following investments typically has the most risk?
A. Government bonds
B. Cash
C. Cash equivalents
D. Certificates of deposit
E. Stocks
Investment Alternatives:
There are various investment alternatives available to investors, such as investment in bank deposits at predefined interest rates, government bonds that provide fixed interest rates, mutual funds, short-term investments, money market funds, stocks, etc. Depending on the level of risk that investors are willing to take, they can choose from a wide range of investments.
Answer and Explanation:1
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Correct answer: Option E) Stocks.
Explanation:
Investment in stocks is riskier compared to investment in other forms like government bonds, which...
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