Question

"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case." (1 point)

-Robert G. Allen, financial writer

This quotation reflects what principle of investing?

A. Higher risk usually offers higher potential return.

B. Higher risk usually offers lower potential return.

C. Greater liquidity usually offers higher potential return.

D. Greater liquidity usually offers lower potential return.

Answer 1

Option "A" is the correct answer to the following question.

Step-by-step explanation:

We know that the interest rates in savings accounts are very low, due to which they do not get much profit but it is safer.

It is said that the return of risk is the benefit, a person who takes a higher risk in business, only he can get more profit.

If you take less risk, the rate of profit is also lower, so Robert G. Admin has said that from investing in savings accounts higher profit can not be made.

It is clear from this scenario that the higher the risk taken, the higher will be the rates of profit.