Question 8 • Personal Finance - EL3403
Savings accounts generally have the least risk because their balances are stable and often insured. Short-term bonds can fluctuate in value, but usually carry less risk than investments in stocks. Mutual funds can hold a mix of investments and have varying risk, while stocks are generally the riskiest in this comparison. So the order is savings accounts, short-term bonds, mutual funds, then stocks.
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