A low-risk investment might have a high price if it protects the initial investment.
Explanation:
Low risk investments are those where the probability of incurring a loss of money is low or nil. That is, where there are greater probabilities of success, obtaining economic returns for making the investment. These investments are usually the ones with the lowest rates, given that they do not imply sudden economic movements within the capital market.
Now, for less risk that an investment has, the possibility of losing always exists. For this reason, when an investment guarantees the protection of the invested capital (for example, through the purchase of insurance), the cost of starting the investment is usually high, due to the high demand that is generated to enter into it.
