6
QuizMultiple Choice

Investment Strategy, Risk, and Behavioral Finance — Quiz

Question 6 • Personal Finance

Why do higher-return investments usually involve more risk?

Answer
A
They involve greater uncertainty.
B
They require less time.
C
They are easier to manage.
D
They are guaranteed.

Explanation

Higher-return investments usually carry more risk because their future results are less certain: the investor may earn a larger gain, but may also lose more money. Greater uncertainty is what makes the investment riskier. The correct choice is “They involve greater uncertainty.”

AI-written and checked against the verified answer.

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