BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Of the savings instruments listed, the one with the highest risk is the:
|
|
savings account
|
|
|
money market fund
|
|
|
mutual fund
|
|
|
treasury bill
|
Explanation:
Detailed explanation-1: -Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors’ money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.
Detailed explanation-2: -Equity Funds are generally considered high risk. Within that category as well, the funds that invest in mid cap or small cap companies (i.e. Mid Cap Fund and Small Cap Fund) score higher on the riskometer. Large Cap funds are comparatively less risky and give more stable returns.
There is 1 question to complete.