Question

If you are willing to accept only a moderate level of risk, you should invest in

A) savings accounts.
B) small cap technology stocks.
C) a stock mutual funds.
D) Treasury bills

Answer 1

Investing in stock mutual funds is a suitable option for those willing to accept a moderate level of risk.

Step-by-step explanation:

If you are willing to accept only a moderate level of risk, you should invest in stock mutual funds. Bank accounts have very low risk and low returns, while small cap technology stocks have the potential for high returns but also high risk.

Treasury bills are considered very low risk but also have low returns. Stock mutual funds offer a balance between risk and return, making them a suitable option for moderate risk tolerance.