Question

Stewart wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed 3% rate of return. However, he would like to earn a higher return. Stewart should keep in mind that to earn a significantly higher return on his money he:________

Answer 1

Answer:

Stewart will probably have to accept a higher level of risk .

Explanation:

Hence, a large-risk investment is one in which the risks of failure, or of losing some or all of the asset, are greater than the average.

• These opportunities often offer investors the ability for greater returns in exchange for embracing the degree of risk associated with that.

• In saving account he gets 3% rate of return but also gets a lower rate of risk and does not earn much.

If he invests his money in higher-risk fields like shares, he may get a higher profit.