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Julia has a tip from a friend about a new company that is about to release an innovative new smartphone. If the technology succeeds, the company could make millions of dollars. However, the company has not released a product like this before, its executives are inexperienced, and it faces strong competition from many other companies in its industry. Julia has never heard of the company before, but she is considering investing $1,000 in its stock.

This investment is best considered


high risk with the potential for a low return.

high risk with the potential for a high return.

low risk with the potential for a low return.

low risk with the potential for a high return.


ANSWER IS high risk with the potential for a high return.

2 Answers

3 votes

Answer:

high risk with high potential.

Step-by-step explanation:

User Jim Burger
by
6.9k points
7 votes

Answer:

high risk with the potential for a high return.

Step-by-step explanation:

Since julia is studying this possibility, you have to see the pro´s and cons, you have a ground breaking product that can be a cornerstone into the new future of smartphones and digital dveices, so that would be a great way to grow and to make profits, while at the same time the people that are developing it are inexperienced in many things, meaning that they could blow it, so it´s high risk, but high return.

User Christian G
by
7.1k points