Question

A high-risk investment is characterized by 

1)a greater percentage chance of loss.
2)superior prospects for short-term gains.
3)a smaller percentage chance of loss.
4) lower interest and compound interest rates.

Answer 1

I think it is 1. A greater percentage chance of loss.

Answer 2

The correct answer is 1: a greater percentage of loss. A high-risk investment carries, as the name implies, a high risk of losing a great amount of money. The benefit of an investment like this is that you could also earn a great amount of money. That's why people still invest in high-risk investments, because the odds are that you also make a lot of money from it.