19
QuizMultiple Choice

Investments — Test

Question 19 • Financial Math

What is a significant risk associated with variable investments?

Answer
A
fixed interest rates
B
fixed principal amount
C
no guaranteed return of principal
D
guaranteed returns

Explanation

Variable investments can rise or fall in value, so the amount you get back is not guaranteed. This means you could receive less than you originally invested, making “no guaranteed return of principal” the significant risk. Guaranteed returns, fixed interest rates, and a fixed principal amount are not typical features of variable investments.

AI-written and checked against the verified answer.

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