ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Higher risk usually offers higher potential return.
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Higher risk usually offers lower potential return.
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Greater liquidity usually offers higher potential return.
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Greater liquidity usually offers lower potential return.
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Detailed explanation-1: -The stock market can make you a millionaire pretty quickly if you pick the right investments and put enough money into them. Many people aren’t great at picking stocks that beat the market, though, so investing in index funds that track the market’s performance is often the right way to go.
Detailed explanation-2: -The easiest way to become a millionaire is to take advantage of compounding by starting to save your money as soon as possible. The earlier you save, the more interest you accumulate. And you’ll earn more money on the interest you earn.
Detailed explanation-3: -Putting away $1, 500 a month is a good savings goal. At this rate, you’ll reach millionaire status in less than 20 years. That’s roughly 34 years sooner than those who save just $50 per month.
Detailed explanation-4: -Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.