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adoni [48]
3 years ago
15

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

<u>The option A is correct.  </u>

<u>Stock in a start-up company is an example of high-risk investment.   </u>

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:

A.

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.  

B.

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.  

C.

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.  

D.

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

<u>brainly.com/question/1430460 </u>

2. Learn more about life insurance

<u>brainly.com/question/2674013 </u>

3. Learn more about negotiating the plan

<u>brainly.com/question/10089477 </u>

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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