ECONOMICS (CBSE/UGC NET)

ECONOMICS

RISK AND RETURN

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is the riskiest investment?
A
Investment A:ER = 22%; SD = 10%
B
Investment B:ER = 24%; SD = 12%
C
Investment C:ER = 21%; SD = 14%
D
Investment D:ER = 20%; SD = 11%
Explanation: 

Detailed explanation-1: -Your “Risk Level” is how much risk you are willing to accept to get a certain level of reward; riskier stocks are both the ones that can lose the most or gain the most over time.

Detailed explanation-2: -Options. An option allows a trader to hold a leveraged position in an asset at a lower cost than buying shares of the asset. Futures. Oil and Gas Exploratory Drilling. Limited Partnerships. Penny Stocks. Alternative Investments. High-Yield Bonds. Leveraged ETFs. More items

Detailed explanation-3: -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

There is 1 question to complete.