ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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investment
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interest
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return
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portfolio
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Detailed explanation-1: -Return is the money an investor receives above and beyond the sum of money initially invested. Savings accounts have greater liquidity, but in general have a lower rate of return (interest). Certificates of deposit (time deposit) usually have a greater return but liquidity is reduced.
Detailed explanation-2: -Funds. Funds are pooled instruments managed by investment managers that enable investors to invest in stocks, bonds, preferred shares, commodities, etc. Two of the most common types of funds are mutual funds and exchange-traded funds or ETFs.
Detailed explanation-3: -The U.S. stock market has long been considered the source of the greatest returns for investors, outperforming all other types of investments including financial securities, real estate, commodities, and art collectibles over the past century.
Detailed explanation-4: -Diversification is simply the strategy of spreading out your money into different types of investments, which reduces risk while still allowing your money to grow. It’s one of the most basic principles of investing.
Detailed explanation-5: -Growth investments. Shares. Property. Defensive investments. Cash. Fixed interest.