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Janet is risk-averse, but wants to earn the best rate of return in less than two years. Which investment would MOST LIKELY meet Janet's needs?

Question 8 options:

bonds


stocks


certificates of deposit


stock-based mutual funds

Janet is risk-averse, but wants to earn the best rate of return in less than two years-example-1
User Guymage
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2 Answers

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She should do certificates of deposit, because the risk is low and she earns money.

A certificate of deposit is when you agree to not touch a certain deposited amount of money in a bank. In return, the banks pays higher interest on that money.

User DGoran
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4 votes

Answer

Janet’s needs would be met by bonds

Step-by-step explanation

Risk-averse is the behavior of lowering risks when faced by uncertainty when investing. A person who is risk-averse requires short-term investing solutions such as bonds. Bonds are less volatile than stocks and will give Janet a lot of options. In this case, it will be best to go for an individual bond that will give her back the initial investment back on maturity of the bond.


User BeauXjames
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