The main function of a high-risk investment is to:A.make a variety of investments to balance risk and reward.B.quickly earn as much return on investment as possible.C.protect an investment from government fees and taxes.D.make sure that an investment does not lose money.

The main function of diversified investments is to:A.quickly earn as much return on investment as possible.B.protect an investment from government fees and taxes.C.make a variety of investments to balance risk and return.D.make sure that an investment does not lose money.

Why are stocks considered a high-risk form of investment?A.Money invested in stocks must be withdrawn quickly.B.The government can seize stocks during emergencies.C.The value of stocks can rise and fall unpredictably.D.Stocks can only be purchased using borrowed money

When investing money to grow your wealth you need to:A.follow the advice you get online.B.make only high-risk investment choices.C.make only safe, low-risk investment choices.D.weigh the risks of an investment against the potential return.SUBMITarrow_backPREVIOUS

There are many types of risk that you should consider when you make an investment.Here's an example of one way to examine your risk. Are you in a financial position to invest in riskier alternatives? You should take less risk if you cannot afford to lose your investment or have its value fall.The kind of risk this examines is best described as Group of answer choicesFinancial risk toleranceFraud riskinflation riskTime horizon riskFinancial goals risk

Your "Risk and Reward" reading began with this discussion:Everything in life comes with trade-offs. Want to be a professional athlete? Or a famous musician? Then you have to forgo building valuable skill sets in other areas in order to hone your abilities in your chosen discipline.Investing is no different. With each and every investment that you make – whether it’s buying a house, managing your portfolio, or paying for your kids’ college, you’re going to be giving up one benefit in exchange for another. Most of the time, this trade-off is between risk and potential return. Understanding this trade-off at a conceptual level will go a long way in helping you to select the right investments (or strategies) on your path to retirement. This discussionGroup of answer choicesrelates to investing choices.is about the economic way of thinking.applies to risk and return.relates to all of these.is really a discussion of scarcity, choice, and opportunity cost.