Final answer:
The claim that one can achieve high returns with low risk is false. Investments involve a correlation between higher returns and higher risks, and the investor's life stage will influence their risk tolerance and investment choices.
Step-by-step explanation:
The statement that earning a high rate of return with little or no risk is a realistic investment goal is false. Investments typically follow the risk-return tradeoff, which means that a higher potential return usually comes with a higher potential risk.
For example, stock market investments can yield high average returns over several decades but are subject to significant fluctuations in the short term. On the contrary, savings accounts offer lower returns but with much less risk. Institutional investors like mutual funds can reduce transaction costs, but individual investments still embody the inherent risk-return dynamics.
Thus, investment choices must consider the investor's life stage, where there might be a preference for lower risk closer to retirement or higher risk for long-term growth when younger.