Final answer:
The investments listed from least to highest risk are CD, mutual fund, and stock. CDs are low risk due to fixed interest rates and FDIC insurance, mutual funds have moderate risk depending on their asset mix, and stocks carry the highest risk with fluctuating values.
Step-by-step explanation:
Understanding Investment Risk Levels
When it comes to investing, understanding the various levels of risk associated with different types of investments is crucial. Generally, investment risk levels increase from safer to riskier investments. One common safe investment is a CD (Certificate of Deposit), which tends to have a fixed interest rate and is insured by the FDIC up to certain limits, making it low risk. Mutual funds, on the other hand, are pools of investments that may contain a mixture of stocks, bonds, and other assets; their risk level varies depending on the makeup of the portfolio but generally has moderate risk. Lastly, stocks can have the highest level of risk because their values can fluctuate greatly based on company performance and market conditions, potentially resulting in both high returns or significant losses.
Therefore, the correct order of investments from least to greatest risk is: CD, mutual fund, stock.