10
RCMultiple Choice

Unit Test — Cumulative exam

Question 10 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

Most investors approach risky investments by

Answer
A
investing the same way that they do with safer investments.
B
investing more money in the stock of unknown companies.
C
investing less money in low- and medium-risk investments.
D
investing less money in high-risk investments.

Explanation

Investors generally limit their exposure to investments with a high chance of loss, so they put less money into high-risk investments than into safer ones. This makes D, “investing less money in high-risk investments,” the best answer; investing the same way regardless of risk would not reflect a cautious approach.

AI-written and checked against the verified answer.

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