22
QuizMultiple Choice

Stocks vs. Bonds

Question 22 • 26-27 Ignite Financial Literacy Personal Finance - EL3403

What is risk, as pertains to investing?

Answer
A
The time period needed to find a buyer for an investment.
B
The cost of purchasing an investment.
C
The chance you take that your investments will lose their value.
D
The opportunity cost of tying your money up in investments.

Explanation

In investing, risk is the possibility that an investment will lose value or produce a worse result than expected. Choice C describes that chance. The time it takes to find a buyer, the purchase cost, and the opportunity cost of tying up money are different considerations.

AI-written and checked against the verified answer.

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