10
practice testMultiple Choice

Practice Test

Question 10 • CMS 2026-2027 Economics and Personal Finance INITIAL CREDIT

Most investors approach risky investments by

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

Explanation

Investors generally limit how much money they put into investments with greater risk, because those investments have a higher chance of losing value. So the correct choice is investing less money in high-risk investments. The other choices either suggest reducing safer investments or taking on more risk, which is not the usual approach.

AI-written and checked against the verified answer.

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