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3 years ago

Investors are often presented with risky investment opportunities. While high risk is typically avoided by

Business

1 answer:

valina [46]3 years ago

4 0

The typical ideal risky investment offers a higher returns and lower liquidity than other investments

Risky investment are investment which has the property of being risky and usually take long period of time to start yielding higher return for the investors.

Example of Risky investment includes Options, Futures, Stocks Investments, Equity, and other Capital market instruments etc

The advantage of risky investment is that the yield on return are very higher than non-risky investment such as Money market

The disadvantage of the investment is that its offer lower liquidity, that is, the rate at which the investment can be converted back to cash is very slow.

Therefore, the Option B is correct because Risky investment offers higher returns and lower liquidity than other investments.

Learn more about Risky investment here

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4 years ago

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