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Which statement best describes the relative risk of two types of investment?

A Bonds are riskier than mutual funds.
B. Individual retirement accounts are riskier than stocks.
C. Stocks are riskier than savings accounts.
D. Certificates of deposit are riskier than hedge funds.

User Koderok
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2 Answers

6 votes

Answer: hey hey i dont know if you still need this answered but im pretty sure its C

Explanation:

User Bourkadi
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4 votes

Answer:

C. Stocks are riskier than savings accounts

Step-by-step explanation:

Risk in business refers to the possibility of losing capital or incurring heavy losses. The riskier the business, the higher the chances of losses but also the higher the expected returns.

Saving is setting money aside for future use while investing involves engaging in commercial activities to generate wealth. Saving is risk-free as the money saved is not exposed to any potential losses. the gain from savings is low as the funds are not "active."

Purchasing stocks is an investment. The buyer expects dividends and the stock prices to increase and realize capital gains. However, there is a risk that prices might decline, and dividends might not be declared.

User Alex Vazhev
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