Business, 01.08.2019 21:00 lavorisjonesjr1

Which is an example of a high-risk investment? stock in a start-up company bond cds from an insured bank 401(k)

Answers: 2

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Answers

Answer from: aylin5044

The answer is A stock in a start-up company

Answer from: chuyyoshy092714

The option A is correct.

Stock in a start-up company is an example of high-risk investment.

Further Explanation:

High-risk investment is a type of investment that has a high risk and high return. The investment may grow beyond the expectation, the investor will earn a huge profit. The high-risk investment may fall beyond the expectation, the investor will incur a huge loss.

Justification for the correct and incorrect

Stock in a startup company: This option is correct.

The startup company does not have a fixed share price. If the company may grow, the share price goes up. If the company may not grow, the share price goes down. This is a type of high-risk investment.

Bond: This option is incorrect.

The bond pays a fixed interest on the investment. As there is no risk, this is not a high-risk investment. Bond is a risk less investment.

CDs from an insured bank: This option is incorrect.

The full of from of CDs is a certificate deposit. As this investment is insured by the bank, there is no risk. This is the incorrect option.

401k plan: This option is incorrect.

401k plan is a type of retirement account that has been opened by the employers. This does not have any type of risk associated with it.

Learn more:

1.Learn more about retirement

2.Learn more about life insurance

3.Learn more about negotiating the plan

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Investment

Keywords:

high-risk investment, 401k plan, stock, company, startup, high risk, expectation, may grow, bond, CDs from an insured bank, type of investment.

Answer from: Quest

Asolar eclipse occurs when the moon gets between earth and the sun, and the moon casts a shadow over earth. a solar eclipse can only take place at the phase of new moon, when the moon passes directly between the sun and earth and its shadows fall upon earth's surface.

Answer from: Quest

To be honest, here's what i think. i think the answer is (and i'm not exactly sure), that it is, both personal and household income.

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Which is an example of a high-risk investment? stock in a start-up company bond cds from an insured...