Question

Ken has an emergency fund in his saving account and a diversified group of investments in his retirement account. He wants to invest some extra money in an investment that could bring great returns despite also being risky. Which investment would be best for Ken?

a certificate of deposit (CD)

stock in a technology company

an index fund

Treasury bonds

Answer 1

stock in a technology company.
individual stock in a tech company can yield the most return but because of market volatility with tech companies, it has the greatest amount of risk when compared to the safer but less lucrative options of Treasury bonds, CDs, or index funds.