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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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Law Incorporation [45]

Answer:

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Explanation:

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3 years ago

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marshall27 [118]

Answer:

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Market Model - monopolistic competition

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Market Model - perfect competition

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Type of Product - standardised

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Type of Product - unique

Market Model - monopoly

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry. In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services.

An example of monopolistic competition are restaurants

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

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