ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following correctly orders the investments from LOWEST risk to HIGHEST risk?
A
Certificate of Deposit-Real Estate-Mutual Fund
B
Real Estate-Certificate of Deposit-Mutual Fund
C
Certificate of Deposit-Mutual Fund-Real Estate
D
Mutual Fund-Certificate of Deposit-Real Estate
Explanation: 

Detailed explanation-1: -The highest risk investments are cryptocurrency, individual stocks, private companies, peer-to-peer lending, hedge funds and private equity funds.

Detailed explanation-2: -Over many decades, the investment that has provided the highest average rate of return has been stocks. But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments.

Detailed explanation-3: -Large cap funds that invest in large cap company stocks i.e stocks of well-established companies with sound financials are considered to be the least risky because these stocks are considered to be safer than stocks of mid cap and smaller companies.

Detailed explanation-4: -Short-term certificates of deposit. Money market funds. Treasury bills, notes, bonds and TIPS. Corporate bonds. Dividend-paying stocks. Preferred stocks. Money market accounts. Fixed annuities. More items •01-Mar-2023

There is 1 question to complete.