Question

Sandy is a personal financial planner at Pro-Future, Inc. Pro-Future is a financial company that focuses on personal and business financing. When potential customers come to Sandy for financial advice, she first determines their investment goals in order to create a financial plan that fits their needs. Once she has created a suitable financial plan for a customer, Sandy gives her clients a pamphlet with suggestions for helping to accumulate the amount of money that they need.

Advice about risk is given to all of Sandys clients. Sandy also makes strategic financial plans for each of her customers, which helps them to track and achieve their financial goals.Refer to Pro-future, Inc. Why would Sandy consider risk to be a good thing?a. The higher the risk, the higher the rate of investment.b. The higher the risk, the larger the possible return.c. The lower the risk, the lower the rate of investment.d. The higher the risk, the lower the possible investment.e. The lower the risk, the larger the possible return.

Answer 1

Sandy considers risk to be beneficial because it can lead to higher returns on investments. She advises her clients on managing risk based on their individual investment goals and life stages, recognizing the tradeoff between risk and return.

Step-by-step explanation:

In the context of Pro-Future, Inc., Sandy considers risk to be a good thing because it is associated with the potential for higher returns. Option B is correct . The concept of risk versus return is a fundamental principle in personal finance and investing. When investing in stock market or mutual funds, higher risk is related to the chance of achieving higher returns over a long time horizon. However, these investments may experience significant fluctuations in the short term. The tradeoff between risk and return must be carefully considered based on individual circumstances, such as life stage and financial goals. For instance, young workers with a longer time to save for retirement may tolerate more risk for the chance at higher returns, whereas someone nearing retirement may prioritize security and consistency over high returns.

Answer 2

d. The higher the risk, the lower the possible investment.

Step-by-step explanation:

With regards to speculation, hazard can be characterized as the changeability of return. the contrast between real result and expected result can be called as hazard. In the given model, Sandy think about that there is a positive connection between the likelihood of hazard and returns. for example on the off chance that there is high hazard, the likelihood of getting returns is high. in the event that there is less hazard, the likelihood of getting returns is low.

Right now, likes to go with if the higher the hazard, the lower the potential ventures, in light of the fact that the inconstancy of profits is high. Means the financial specialist could conceivably get the profits, consequently they may like to go with certain and ensured returns than dubious more significant yields. In the region of ventures it is a typical inquiry to all, some may go with higher the hazard the lower the conceivable speculation.

Henceforth, the appropriate response is option D.

In the event that an announcement is there that the higher the hazard, the bigger the potential returns, it doesn't imply that the speculator gets more significant yields with his ventures. the odds are there to get more significant yields simultaneously there are a few issues moreover.