Question

Select all of the common investment alternatives. mutual fund retirement investment money market account real estate stock IDA

Answer 1

The correct answers are "mutual fund", "money market", "real state", and "Stock".

All of these are forms of investment with varying volatility and there, risk.

• Mutual Funds are a form of investment in which you save you entrust your money to an institution who promises you a given return by investing it in diverse markets.
• The Money Market is also an option for trading financial instruments with usual high rates of return (and risk).
• Real Estate investments are an expensive, yet very safe way of investing, as land is the only asset which does not depreciate or lose value.
• Stocks are a small percentage of ownership of companies. The expectation is that the value of these companies will rise leading to a potential gain by selling the stocks.