19
QuizMultiple Choice

N/A — Exam

Question 19 • Economics

A low-risk investment might have a high price if

Answer
A
it is in great demand.
B
it guarantees profits.
C
it belongs to a new company.
D
it protects the initial investment.

Explanation

When many investors want a low-risk investment, strong demand can push its price up. Low risk does not guarantee profits, and being from a new company does not by itself make an investment expensive. Protecting the initial investment describes a feature of the investment, but demand is what explains a high price.

AI-written and checked against the verified answer.

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