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3 years ago

Which is an example of a high-risk investment?

Business

2 answers:

vladimir1956 [14]3 years ago

6 0

The answer is A stock in a start-up company

Yuki888 [10]3 years ago

3 0

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 answer:

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

brainly.com/question/1430460

2. Learn more about life insurance

brainly.com/question/2674013

3. Learn more about negotiating the plan

brainly.com/question/10089477

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.

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Answer:

The correct answers are:

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Explanation:

i. The marginal gain from 8:00 AM to 9:00 AM is calculated thus:

work done at 8:00 AM = 0 problems

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ii. work done at 10:00 AM = 70 problems

work done at 11:00 AM = 90 problems

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iii. To get the best exam score, the most number of problems possible in total must be answered within the 4-hour period, and this is determined as follows:

we are told that Maria gets tired as time progresses and the number of questions answered reduces we notice the following numbers of questions answered in each hour:

8:00 AM to 9:00 AM = 40 - 0 = 40 problems (hour 1)

9:00 AM to 10:00 AM = 70 - 40 = 30 problems (hour 2)

10:00 AM to 11:00 AM = 90 - 70 = 20 problems (hour 3)

11:00 AM to Noon = 100 - 90 = 10 problems (hour 4)

Also, we are told that;

1 hour of reading = 25 problems

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