Question

Which rule is important to remember when evaluating risk? long-term investments tend to be less risky. there is no connection between risk and return investments believed to be unpre

Answer 1

The correct response is that investments that are thought to be unpredictable are more dangerous.

Every investment entails some level of risk. If market circumstances deteriorate, stocks, bonds, mutual funds, and exchange-traded funds might lose value. Inflation risk exists even with conservative, insured investments like certificates of deposit (CDs) issued by banks or credit unions. Over time, they might not make enough money to keep up with the rising cost of living.

However, one investment is much riskier and more deadly than other investments right from the start. An investment not on that table and is made without knowing any uncertainties is more comparatively on the verge of getting lost.

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