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What type of asset is likely to earn the least return on your money?A.StocksB.Raw landC.High-yield bondsD.Savings accountSUBMITarrow_backPREVIOUS

Question

What type of asset is likely to earn the least return on your money?

A. Stocks
B. Raw land
C. High-yield bonds
D. Savings account

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Solution

The type of asset that is likely to earn the least return on your money is D. Savings account.

Here's why:

A. Stocks: While they can be risky, stocks have the potential for high returns, especially over the long term.

B. Raw Land: This can also provide a high return, especially if the land is in a location that becomes desirable for development.

C. High-yield bonds: These are riskier than regular bonds, but they offer higher interest rates in return.

D. Savings Account: These are very low risk, but they also provide very low returns. In fact, the interest rate on a savings account often does not keep up with inflation, meaning you could actually lose purchasing power over time.

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