Question

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

Answer 1

Which statement is generally true of an investment that is highly volatile but has superior, long-term real rates of return?

It has low liquidity because selling would often require selling at a loss.

High volatile investments are investments that always fluctuates in the market. It can generate you very high income or very low income. It has low liquidity because when you sell it right away, you tend to sell at a loss.