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Which of the following investment choices is least risky?

A). REIs
B). CDs
C). Renting
D). Flipping

User Taber
by
5.7k points

2 Answers

3 votes

Answer:

Government Bonds -_- APEX

Explanation:

User Sheldon Neilson
by
5.8k points
4 votes

Answer:

The correct answer is B. CDs

Explanation:

A). REIs : Real Estate Investment or REIs include the purchase, ownership, management, rental or sale of real estate for profit. But it is more risky as they are required by the law to pay out at least 90% of their net income as a distribution of profit.

B). CDs or Certificate of Deposit are similar to savings account and do not offer more risk as compared to other investing strategies.

C). Renting includes buying any property or item and waiting to sell it when the rates are higher than the cost price So, it includes risks like falling rates in the property or item that is bought.

D). Flipping refers to purchasing an asset with the intent of selling it for a quick profit rather than holding on for long-term appreciation.But it is more risky as if you will not find buyer for your asset then you will lose money each day.

So, as described above the least risky investing strategy is CDs or Certificate of Deposit.


User Toufik
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5.8k points