Question

What are some characteristics of short-term investments? Check all that apply. They usually last for less than a year. They are considered low risk. They typically include both stocks and bonds. They typically help investors save for retirement. They can include savings accounts and CDs.

Answer 1

A. They usually last for less than a year.

B. They are considered low risk.

E. They can include savings accounts and CDs.

Step-by-step explanation:

Just got them right.

Answer 2

Short-term investments usually applies to a group of investments that would yield its returns in less than five years, some even within a year. Thus, characteristics that would best define them are: (A) they usually last for less than a year, (B) they are considered low risk, and (E) they can include saving accounts and CDs.

The other options are incorrect because short-term investments are not recommended for retirement due to its low rate of return yield and stocks are not considered as short-term investments.