Question

Which of the following correctly orders the investments from LOWER risk to HIGHER risk?

Answer 1

The answer is Treasury Bond - Diversified Mutual Fund - Stock

The treasury bond is a bond issued by the US Treasury. It is  backed up by the government which takes the full faith and credit and thus remain a low risk investment. Diversified mutual bond comprises a wide array of securities to lessen the risk in the fund. Lastly, stocks. This signifies the share you hold in the company. It is considered a high risk because when the company's stock drops, your stock in that company will drop too.

Answer 2

The correct answer is Treasury Bond-Diversified Mutual Fund–Stock.

Further explanation:

Treasury bond is fixed interest debt security provided by the United State of America government to raise funds to finance for completing the requirements. Agency bond are the safest investment compare to Treasury bond for their high liquidity and low risk. The minimum time span for maturity in Treasury bond is 10 years and it can extend to 30 years. The Treasury bond has interest semiannually till the maturity and after that face value of the bond is given to the owner. The minimum denomination of Treasury bond is $1000.

Since the Treasury bond is backed up by the US government so it has low risk and have high faith on Treasury bond. The diversified mutual fund have wide range of security that makes it more secure to lesson the risk in the security. The risk is high if the company’s stocks drops then your stocks in that company also drops down.

Learn more:

1. Minimum payment of credit card

brainly.com/question/6453895

2. Charging fee in case of credit card

brainly.com/question/1124275

3. Consequences of non-payment of monthly credit card payment

brainly.com/question/3211811

Answer details:

Grade: College

Subject: Business Studies

Chapter: Mutual Fund

Keyword:

Treasury bond, diversified mutual fund, stock, lower, higher, risk, interest, debt, security, US government, agency bond, liquidity, time, 10 years, 30 year, denomination, company