Business, 01.08.2019 21:00 lavorisjonesjr1

Which is an example of a high-risk investment? stock in a start-up company bond cds from an insured bank 401(k)

Answers: 2

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Answers

Answer from: aylin5044

The answer is A stock in a start-up company

Answer from: chuyyoshy092714

The option A is correct.

Stock in a start-up company is an example of high-risk investment.

Further Explanation:

High-risk investment is a type of investment that has a high risk and high return. The investment may grow beyond the expectation, the investor will earn a huge profit. The high-risk investment may fall beyond the expectation, the investor will incur a huge loss.

Justification for the correct and incorrect

Stock in a startup company: This option is correct.

The startup company does not have a fixed share price. If the company may grow, the share price goes up. If the company may not grow, the share price goes down. This is a type of high-risk investment.

Bond: This option is incorrect.

The bond pays a fixed interest on the investment. As there is no risk, this is not a high-risk investment. Bond is a risk less investment.

CDs from an insured bank: This option is incorrect.

The full of from of CDs is a certificate deposit. As this investment is insured by the bank, there is no risk. This is the incorrect option.

401k plan: This option is incorrect.

401k plan is a type of retirement account that has been opened by the employers. This does not have any type of risk associated with it.

Learn more:

1.Learn more about retirement

2.Learn more about life insurance

3.Learn more about negotiating the plan

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Investment

Keywords:

high-risk investment, 401k plan, stock, company, startup, high risk, expectation, may grow, bond, CDs from an insured bank, type of investment.

Answer from: Quest

answer; no individual buyer or seller has any significant impact on the market price;

Answer from: Quest

Answer i believe the answer is a theme;

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Which is an example of a high-risk investment? stock in a start-up company bond cds from an insured...