Final answer:
The three main investment categories listed from least risk to most risk are cash, bonds, and stocks. Cash investments have the lowest risk and lowest returns, bonds carry a moderate risk with higher returns, and stocks are the riskiest with potentially the highest returns.
Step-by-step explanation:
When considering the risk and return of different investment categories, it is important to understand their hierarchy in terms of potential risk. The investment options mentioned, such as cash, bonds, and stocks, each carry different levels of risk and potential returns. Cash investments like bank accounts have very low risk but also offer the lowest returns. Bonds come with a moderately higher risk than cash and can potentially provide higher returns. Stocks are considered the riskiest of the three, but they also have the possibility of yielding the highest returns.
The correct answer to the question is therefore 'c. cash, bonds, stocks' as cash equates to the lowest risk, followed by bonds with a medium risk, and stocks with the highest risk. This risk hierarchy is predicated on the balance between the expected return and the accompanying risk level for each type of investment.