Which statement best describes the relative risk of two types of investment?A.Certificates of deposit are riskier than hedge funds.B.Stocks are riskier than savings accounts.C.Bonds are riskier than mutual funds.D.Individual retirement accounts are riskier than stocks.

The statement that best describes the relative risk of two types of investment is B. Stocks are riskier than savings accounts.

Here's why:

A. Certificates of deposit are not riskier than hedge funds. Hedge funds involve a high degree of risk and are typically open to certain accredited or qualified investors. Certificates of deposit (CDs), on the other hand, are time deposit accounts offered by banks with a fixed term. They are insured and thus, carry less risk.

B. Stocks are indeed riskier than savings accounts. Stocks represent ownership in a company and their value can fluctuate based on the company's performance and market conditions. Savings accounts, however, are insured by the Federal Deposit Insurance Corporation (FDIC) up to certain limits and offer a fixed return, making them less risky.

C. Bonds are not necessarily riskier than mutual funds. Mutual funds are investment vehicles that pool money from many investors to purchase a diversified portfolio of stocks, bonds, or other assets. The risk of a mutual fund depends on its specific investments. Bonds are debt securities that pay interest over a fixed period and are generally considered less risky than stocks.

D. Individual retirement accounts (IRAs) are not riskier than stocks. An IRA is a type of savings account that is designed for retirement savings with tax advantages. The risk of an IRA depends on the investments it holds. It could be invested in a variety of assets, including stocks, bonds, mutual funds, etc. Stocks, as mentioned earlier, carry a higher degree of risk due to their volatility.