The investment with the highest risk is _____.A.government bondsB.mutual fundsC.real estateD.stocksSUBMITarrow_backPREVIOUS

Analyzing Investment Risks

1. Define Investment Types:

   • Government Bonds: Generally low-risk as they are backed by the government.
   • Mutual Funds: These can range from low to high risk, depending on the assets they invest in.
   • Real Estate: Involves risk due to market fluctuations, but typically less risky than stocks.
   • Stocks: Tend to have the highest variability in value, influenced by market conditions, making them high-risk investments.

2. Interpret Risk Levels:

   • Individuals typically associate stocks with higher volatility and potential for loss, especially in a turbulent market.

3. Final Assessment:

   • Among the options provided, stocks are widely recognized as the investment with the highest risk.

Final Answer

The investment with the highest risk is D. stocks.