Final answer:
The list of investments by increasing risk level is CD, mutual fund, stock. CDs have the lowest risk, followed by mutual funds, which offer diversification. Stocks are the riskiest due to direct market exposure.
Step-by-step explanation:
The question is asking for the correct order of investments by increasing risk level. The correct answer is d. CD, mutual fund, stock.
Certificates of Deposit (CDs) are generally considered low risk because they are insured and offer a fixed rate of return. Mutual funds, although they involve a mix of investments like stocks and bonds, provide the benefit of diversification, thus spreading the risk.
However, they carry a higher risk than CDs due to their exposure to market fluctuations. Stocks are generally the riskiest of these investment options since their value is directly tied to the performance of individual companies and market conditions, which can be unpredictable.