ECONOMICS
SAVING AND INVESTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
they are still a good investment to reach long-term goals
|
|
|
they are still a good investment to reach short-term goals.
|
|
|
they should be avoided unless you get a guaranteed rate of return.
|
|
|
you can still make money if you buy enough of them.
|
Detailed explanation-1: -High-risk investments may offer the chance of higher returns than other investments might produce, but they put your money at higher risk. This means that if things go well, high-risk investments can produce high returns. But if things go badly, you could lose all of the money you invested.
Detailed explanation-2: -If you’re taking a long-term perspective on the stock market and are properly diversifying your portfolio, it’s almost always a good time to invest. That’s because the market tends to go up over time, and time in the market is more important than timing the market, as the old saying goes.
Detailed explanation-3: -If the company has a consistent history of rising earnings over a period of many years, it could be a good long-term buy. Also, look at what the company’s earnings projections are going forward. If they’re projected to remain strong, this could be a sign that the company may be a good long-term buy.
Detailed explanation-4: -Your securities could lose value when you need to liquidate. At some point, your investments will lose value. Your portfolio could underperform over time. You could get overconfident. You could lose confidence. Facing risk.