Which of the following investments has the highest risk and rate of return?
Answer and Explanation:
What type of investment has the highest risk and the highest return?
The U.S. stock market is considered to offer the highest investment returns over time. Higher returns, however, come with higher risk. Stock prices typically are more volatile than bond prices.
Which of the following is considered the most risky investment?
corporate stocks can be considered as the riskiest investment.
Which of the following investment carries higher risk?
The highest risk investments are cryptocurrency, individual stocks, private companies, peer-to-peer lending, hedge funds and private equity funds. High-risk, volatile investments may bring high rewards, or they may bring high loss.
Which funds have the highest risk and return ratio?
Small-cap and mid-cap equity funds are typically considered high-risk, high-return options as they invest in smaller companies with significant growth potential but heightened volatility.
Which investment has high return and low risk?
Returns from low-risk investments, like government bonds, tend to be modest. Some low-risk choices, like CDs or high-yield savings accounts, can be reliable ways to generate a better return than you'll find in a traditional savings account.
Which would be considered the highest risk investment type quizlet?
Because stocks have a much higher risk than mutual funds, savings accounts and bonds, which implies that the portfolio with the highest percentage of stocks is the most riskful.
Which of the investment types carries the highest risk Why?
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.
What is the riskiest type of investment quizlet?
Mutual funds are the riskiest type of investment. The difference between a chosen investment and one that is passed up is _____.
Which investment strategy carries the most risk quizlet?
Creative investment strategies involve the highest risk. Aggressive investment strategies involve high-risk investments.
What is an example of the higher the risk the higher the return?
Examples of high-risk, high-return investments include options, penny stocks, and leveraged exchange-traded funds (ETFs). Generally speaking, a diversified portfolio reduces the risks presented by individual investment positions.
Which fund has the highest return?
| Ticker | Name | 5-year return (%) |
|---|---|---|
| FGRTX | Fidelity Mega Cap Stock | 16.52% |
| STSEX | BlackRock Exchange BlackRock | 16.27% |
| USBOX | Pear Tree Quality Ordinary | 16.13% |
| FGLGX | Fidelity Series Large Cap Stock | 16.08% |
Which fund gives highest return?
Here are 5 mutual fund schemes with highest 3-year returns along with their expense ratios: Quant Small Cap Fund(G) tops the chart with over 39% returns followed by Quant Mid Cap Fund(G), Nippon India Small Cap Fund(G), Quant Flexi Cap Fund(G) and Motilal Oswal Midcap Fund-Reg(G) in the same pecking order.
What is a high return to risk ratio?
The risk/reward ratio is used by traders and investors to manage their capital and risk of loss. The ratio helps assess the expected return and risk of a given trade. In general, the greater the risk, the greater the expected return demanded. An appropriate risk reward ratio tends to be anything greater than 1:3.
What are 3 high-risk investments?
- Cryptoassets (also known as cryptos)
- Mini-bonds (sometimes called high interest return bonds)
- Land banking.
- Contracts for Difference (CFDs)
Which of the following investments has the lowest risk and lowest return?
| Risk & return | Types of investment |
|---|---|
| Low-risk & low-return | money markets, treasury bills, bonds |
| Moderate-risk & moderate-return | mutual funds, index funds |
| High-risk & high-return | stocks, cryptocurrency, commodities |
What kind of investment is the lowest risk?
Fixed deposit (FD)
An FD is not dependent on market fluctuations. Hence, it becomes the most reliable option when it comes to low risk and offers profitable returns.
Which is the riskiest investment avenues?
Shares or equities are seen as the most risky asset class, because of the volatile nature of stock markets. The risk factor is also determined by the kind of market you're operating in. The more stable the market the lesser the risk as compared to emerging markets like India, China or Brazil.
Which of the following types of investments accounts are considered higher risk?
At the low-risk end of the spectrum are basic investments such as Certificates of Deposit (CDs); bonds or fixed-income instruments are higher up on the risk scale, while stocks or equities are regarded as riskier. Commodities and derivatives are generally considered to be among the riskiest investments.
Which type of bond is the riskiest investment?
Non-investment grade bonds, or "junk bonds," are considered higher risk and earn higher returns than investment-grade bonds or U.S. government bonds. However, you also run a higher risk of default, or not getting your money back. You can invest in corporate bonds through a broker.
Which investment has the highest risk according to the investment pyramid?
The top of our pyramid represents the most risky of all investments-options and futures. These investments are for the savviest investor. Many fortunes can be made and lost in this category.
Which is an example of a high risk?
High-risk behaviors are defined as acts that increase the risk of disease or injury, which can subsequently lead to disability, death, or social problems. The most common high-risk behaviors include violence, alcoholism, tobacco use disorder, risky sexual behaviors, and eating disorders.
Is the higher the risk the higher the return?
A positive correlation exists between risk and return: the greater the risk, the higher the potential for profit or loss. Using the risk-reward tradeoff principle, low levels of uncertainty (risk) are associated with low returns and high levels of uncertainty with high returns.
What is low risk and high return?
By definition, a low-risk investment usually offers higher returns than traditional bank deposits, but it involves less risk than other investment opportunities. Less risk usually means less chance for high growth.
What is the most risky type of trading?
Among various forms of trading, day trading is often considered one of the riskiest. Day trading involves the buying and selling of financial instruments within the same trading day, with the goal of profiting from short-term price fluctuations.
