Which of the adhering to effectively orders the investments from lowest danger to highest possible risk?
The correct answer is Treasury Bond-Diversified Mutual Fund–Stock.
You are watching: Which of the following correctly orders the investments from lower risk to higher risk? a
What investment kind generally carries the leastern risk?
The investment type that typically carries the least danger is a savings account. CDs, bonds, and also money industry accounts can be grouped in as the leastern riskies investment types approximately. These financial instruments have actually minimal industry exposure, which indicates they’re much less impacted by fluctuations than stocks or funds.
Why is a high top quality bond generally considered a reduced danger investment than a stock?
Why is a high-quality bond typically thought about a lower-risk investment than a stock? A bond frequently pays a solved, predictable amount of interemainder annually. The issuer will certainly pay you earlier, plus interemainder.
People additionally read: What is the meaning of word examine on?
Which would certainly be considered the highest possible threat investment type?
Stocks / Equity Investments incorporate stocks and also stock shared funds. These investments are taken into consideration the riskiest of the three major ascollection classes, yet they likewise sell the best potential for high returns.
What is the relationship in between rerevolve and also risk?
The risk-return tradeoff says that the potential rerevolve rises with an increase in danger. Using this principle, people associate low levels of uncertainty through low potential returns, and high levels of uncertainty or threat with high potential returns.
What is the greatest hazard investment type?
The 10 Riskiest InvestmentsOptions. An option enables a trader to hold a leveraged place in an asset at a reduced expense than buying shares of the asset. Futures. Oil and also Gas Exploratory Drilling. Limited Partnerships. Penny Stocks. Alteraboriginal Investments. Junk Bonds. Leveraged ETFs.
What forms of investments has the lowest risk and also lowest return rate?
The Spectrum of Risk Safe/Low Return: CDs, treasury securities, savings bonds, life insurance (from highly rated carriers) Very Low Risk/Return: Fixed and indexed annuities, insured municipal bonds. Low Risk/Return: Investment-grade corpoprice bonds (rated BBB or higher), uninsured municipal bonds.
Which investments are the safest and also which are the riskiest?
Bonds / Fixed Income Investments include bonds and bond shared funds. They’re riskier than cash equivalents yet are frequently less riskies to your primary than stocks. They likewise generally sell lower retransforms than stocks. Stocks / Equity Investments encompass stocks and stock common funds.
People additionally read: How perform you find the nearest cent?
Which form of investment comes via the greatest risk in the highest possible potential return?
Stocks, bonds, and common funds are the a lot of prevalent investment assets. All have actually higher threats and perhaps better retransforms than savings assets. Over many kind of decades, the investment that has actually gave the highest possible average rate of rerevolve has actually been stocks.
See more: An Element Is Defined By The Number Of, High School Chemistry : Identifying Elements
The risk-rerevolve tradeoff states the higher the threat, the greater the reward—and also vice versa. Using this principle, low levels of uncertainty (risk) are linked via low potential retransforms and high levels of uncertainty via high potential retransforms.