ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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financial investments that promise the highest returns
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financial investments recommended to them by friends
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financial investments that are financially complicated
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financial investments they understand
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Detailed explanation-1: -The PEG ratio provides a more complete picture of whether a stock’s price is overvalued or undervalued by analyzing both today’s earnings and the expected growth rate. Typically a stock with a PEG of less than 1 is considered undervalued since its price is low compared to the company’s expected earnings growth.
Detailed explanation-2: -Diversification is a strategy that mixes a wide variety of investments within a portfolio in an attempt to reduce portfolio risk. Diversification is most often done by investing in different asset classes such as stocks, bonds, real estate, or cryptocurrency.
Detailed explanation-3: -Stocks, real estate, and precious metals are all ownership investments. The buyer hopes that they will increase in value over time. Lending money is an investment. Bonds and even savings accounts are loans that earn interest over time for the investor.
Detailed explanation-4: -High-yield savings accounts. Series I savings bonds. Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. More items •01-Mar-2023