What is one major drawback of high-return investments compared to low-return investments?A.High-return investments have higher associated fees.B.High-return investments are not available to young people.C.High-return investments have a greater risk of failing.D.High-return investments require more capital to invest
Question
What is one major drawback of high-return investments compared to low-return investments?A.High-return investments have higher associated fees.B.High-return investments are not available to young people.C.High-return investments have a greater risk of failing.D.High-return investments require more capital to invest
Solution
One major drawback of high-return investments compared to low-return investments is that high-return investments have a greater risk of failing. This means that while you have the potential to earn a lot of money, you also have the potential to lose a lot. This is because high-return investments often involve more volatile markets or industries, which can be unpredictable and subject to rapid changes. On the other hand, low-return investments are typically more stable and reliable, but offer smaller profits.
Similar Questions
What is one disadvantage of a hedge fund?A.Hedge funds are safe investments but tend to produce low returns.B.Hedge funds often use high-risk methods to produce high returns.C.Hedge funds are public and tend to be overrun with investors.D.Hedge funds only target investors with a low net worth.
Which type of investment can produce a high return but exposes the investor to a high level of risk?A.Certificates of depositB.StocksC.Savings accountsD.Individual retirement accounts
Which investment strategy would work best if you want to grow your investment slowly without losing much money?A.Low-risk, high-returnB.High-risk, low-returnC.Low-risk, low-returnD.High-risk, high-returnSUBMITarrow_backPREVIOUS
Which type of investment typically offers the highest potential return but also the highest risk?a) Cash equivalents b) Government bonds c) Stocks d) Savings accounts
Multiple Choice QuestionWhich type of investment often returns more than other investment alternatives like bonds, yet it is also more risky?Multiple choice question.stockscertificates of depositbondslife insurance
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.