1
QuizMultiple Choice

Investing — Quiz

Question 1 • Personal Finance and Economics

A high-risk investment is characterized by

Answer
A
superior prospects for short-term gains.
B
lower interest and compound interest rates.
C
a greater percentage chance of loss.
D
a smaller percentage chance of loss.

Explanation

Risk describes the possibility that an investment will lose value or fail to produce the expected return. A high-risk investment therefore has a greater percentage chance of loss, rather than a smaller one. The correct choice is “a greater percentage chance of loss.”

AI-written and checked against the verified answer.

Next