To determine which investment carries the most risk among the options given: a) Savings account, b) Certificate of deposit (CD), and c) Stocks, we can evaluate them based on their characteristics and potential for risk.

1. **Savings Account**:
- Typically offers low interest rates.
- Funds are insured by the government up to a certain limit (e.g., FDIC in the U.S.), making it very low risk.

2. **Certificate of Deposit**:
- Generally provides a higher interest rate than a savings account but requires funds to be locked for a specified term.
- Insured by the government up to a limit, thus considered low risk.

3. **Stocks**:
- Represent ownership in a company and their value can fluctuate significantly based on market conditions.
- No government insurance, leading to higher potential for loss compared to savings accounts and CDs.

### Conclusion
Among the three options, **c) Stocks** carry the most risk due to their volatility and lack of insurance, while savings accounts and CDs are much safer investments.

Question

To determine which investment carries the most risk among the options given: a) Savings account, b) Certificate of deposit (CD), and c) Stocks, we can evaluate them based on their characteristics and potential for risk.

1. **Savings Account**: 
   - Typically offers low interest rates.
   - Funds are insured by the government up to a certain limit (e.g., FDIC in the U.S.), making it very low risk.
   
2. **Certificate of Deposit**: 
   - Generally provides a higher interest rate than a savings account but requires funds to be locked for a specified term.
   - Insured by the government up to a limit, thus considered low risk.

3. **Stocks**: 
   - Represent ownership in a company and their value can fluctuate significantly based on market conditions.
   - No government insurance, leading to higher potential for loss compared to savings accounts and CDs.

### Conclusion
Among the three options, **c) Stocks** carry the most risk due to their volatility and lack of insurance, while savings accounts and CDs are much safer investments.

Knowee AI · Accepted Answer

To determine which investment carries the most risk among the options given: a) Savings account, b) Certificate of deposit (CD), and c) Stocks, we can evaluate them based on their characteristics and potential for risk.

1. **Savings Account**: 
   - Typically offers low interest rates.
   - Funds are insured by the government up to a certain limit (e.g., FDIC in the U.S.), making it very low risk.
   
2. **Certificate of Deposit**: 
   - Generally provides a higher interest rate than a savings account but requires funds to be locked for a specified term.
   - Insured by the government up to a limit, thus considered low risk.

3. **Stocks**: 
   - Represent ownership in a company and their value can fluctuate significantly based on market conditions.
   - No government insurance, leading to higher potential for loss compared to savings accounts and CDs.

### Conclusion
Among the three options, **c) Stocks** carry the most risk due to their volatility and lack of insurance, while savings accounts and CDs are much safer investments.

The investment with the most risk would be aSavings account bCertificate of deposit cStocks

Question

The investment with the most risk would be:

Solution

Conclusion

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