Question

Which type of investment would be an example of an investment at point B? a US savings bond a CD a stock a savings account

Answer 1

Answer:

Stock

Explanation:

As you can see in the graph, investment B has a high risk, which means that the investor can lose a lot of money by adopting this type of experiment. However, the same investment has a high return, which means that the investor can likewise earn a lot of money if he decides to invest. Among the options given in the question above, the experiment that best fits this concept is stock.

In the stock market, the investor acquires pieces of companies that can lead to enormous financial stability, however these companies are doomed to the success of a region's economy, which is something highly changeable, for this reason, this type of investment presents a high risk .

Answer 2

Assuming both graphs increase from point A to both B, the asset class that has highest risk and typically highest return is "a stock".

US bonds have the lowest (and often benchmarked) rates of return and risk, stocks the highest, and CD's, bonds, and savings accounts in the middle.

Hope this helps