Multiple Choice QuestionWhich type of investment ranges from very conservative to very speculative?Multiple choice question.Certificates of depositGovernment bondsMutual fundsDividends
Question
Multiple Choice QuestionWhich type of investment ranges from very conservative to very speculative?Multiple choice question.Certificates of depositGovernment bondsMutual fundsDividends
Solution
The answer is Mutual funds. Mutual funds can range from very conservative to very speculative because they can be composed of a variety of investment types, including stocks, bonds, and other securities. The risk and return of a mutual fund depend on the performance of the securities it decides to buy. So, a mutual fund can be very conservative if it invests in low-risk securities and very speculative if it invests in high-risk securities.
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