Question

Which statements describe the role of risk in making investment decisions? Check all that apply. When discussing investments, “risk” is the possibility of little or no return. Risk is an element to consider when investing in stocks. Low risks typically have high returns. The higher an investment’s risk, the greater its potential return will be. When making an investment, profits are always guaranteed.

Answer 1

Answer:

When discussing investments, “risk” is the possibility of little or no return

Low risks typically have high returns.

The higher an investment’s risk, the greater its potential return will be.

Explanation:

Risk is a situation that involves an exposure to dangerous outcomes. This risk can be from very little extent to a huge extent, depending upon how you take it and in what circumstances you decide to play.

In the above question, in business terms, risk is necessary in order to achieve profits.  The statements

When discussing investments, “risk” is the possibility of little or no return

Low risks typically have high returns.

The higher an investment’s risk, the greater its potential return will be,

are correct.

Answer 2

Answer-When discussing investments, “risk” is the possibility of little or no return.
Risk is an element to consider when investing in stocks.
The higher an investment’s risk, the greater its potential return will be.