Which of the following investment types carries the lowest risk? (2024)

Which of the following investment types carries the lowest risk?

The correct option is: c.

What is the lowest risk form of investment?

Which one of the following types of investments has the lowest risk?

At the low-risk end of the spectrum are basic investments such as Certificates of Deposit (CDs); bonds or fixed-income instruments are higher up on the risk scale, while stocks or equities are regarded as riskier. Commodities and derivatives are generally considered to be among the riskiest investments.

Which of the following investments usually carries the lowest risk?

Bonds are usually considered to be the least risky investment among the options provided. Stocks are considered to be more risky because their value can fluctuate greatly, depending on market conditions and the performance of the company.

What is the least risky thing to invest in?

What is the least risk portfolio called?

The portfolio having the least risk (variance) among all the portfolios of risky assets is called the global minimum-variance portfolio.

What are low and high risk investments?

Investment portfolios often include a mix of high- and low-risk investments. Riskier investments have the potential for bigger losses—but there's also the opportunity for larger gains. Low-risk investments, on the other hand, are seen as safer bets that typically pull smaller returns.

What type of investment has the lowest risk in Quizlet?

Investments with low risk pertains to those with type of accounts that are not directly affected by market fluctuations like stocks or mutual funds. Examples of which are savings account where money is just stored and earns interest (although banks usually have low interest rates), bonds, and money market funds.

Which of the following type of investment is the least risky quizlet?

The money market account is the least risky investment, because it invests in United States government bonds, and the United States government is very unlikely to default.

Which of the following investments has the lowest risk and lowest return?

Which investment is the safest?

What type of investment has the most risk?

What are 3 very risky investments?

While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.

What is a low-risk investor?

Low-risk investing not only means protecting against the chance of any loss, but it also means making sure that none of the potential losses will be devastating.

Are mutual funds low-risk?

No investment is risk-free and while mutual funds are generally low-risk because they invest in low-risk securities, they are not completely risk-free.

Are low-risk investments worth it?

The lower the risk, the lower the potential returns. The higher the risk, the higher the potential returns. Although, what you can expect and what you actually get may differ. If you'd rather prioritise protecting the value of your money, you'll have to sacrifice the prospect of greater returns.

Which is the safest investment quizlet?

Government bonds are considered one of the safest types of investments because they are backed by the government.

Which investment has the lowest level of reinvestment risk?

Investments with lower exposure to reinvestment risk include longer-term bonds, zero-coupon bonds, and non-callable bonds.

Which of the following assets has the least marketability risk?

Final answer: Among the given options, Stocks traded on the New York Stock Exchange have the least marketability risk due to their ease of trade. In contrast, Rental real estate, Gold held as collectible coins, and Municipal bonds present higher marketability risk.

Which investment strategy carries the most risk in Quizlet?

Creative investment strategies involve the highest risk. Aggressive investment strategies involve high-risk investments.

Are bonds or stocks riskier?

Given the numerous reasons a company's business can decline, stocks are typically riskier than bonds. However, with that higher risk can come higher returns. The market's average annual return is about 10%, not accounting for inflation.

Which of these bonds has lower risk?

Government bonds are generally considered lower risk because they are backed by the government.

What investments should I avoid?

Stocks of highly indebted companies

These companies spent the boom times racking up debt or not paying it off. In a downturn, they're often hit by flagging sales, which could make it even harder to pay down their debts. Plus, all that debt hamstrings the kind of desperate actions they may need to take to survive.

What is at risk investment?

If everything that has been invested in the company is from your own funds, and therefore any loss by the company comes out of your own pocket (and is not covered for you by someone else), then it is likely that all of the investment is at risk.

What investment never loses value?

Series I Savings Bonds

This means they're specifically designed to help protect your cash value from inflation. I bonds won't ever lose the principal value of your investment, either, and the redemption value of your I bonds won't decline.