BUISENESS MANAGEMENT
FINANCIAL MANAGEMENT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Of the savings instruments listed, the one with the highest risk is the:
|
|
savings account
|
|
|
money market fund
|
|
|
mutual fund
|
|
|
treasury bill
|
Explanation:
Detailed explanation-1: -Sectoral funds: These are the riskiest category of equity mutual funds which invest a minimum of 80% of their portfolio in companies belonging to the same sector.
Detailed explanation-2: -Equities are generally considered the riskiest class of assets. Dividends aside, they offer no guarantees, and investors’ money is subject to the successes and failures of private businesses in a fiercely competitive marketplace. Equity investing involves buying stock in a private company or group of companies.
There is 1 question to complete.