generally, the higher the potential return on an investment, the higher the potential risk. true false…
generally, the higher the potential return on an investment, the higher the potential risk. true false question 7 (1 point) a fixed rate investment guarantees a specific interest rate for a set period of time. true false question 8 (1 point) equity investments are always safer than fixed rate investments. true false
Answer
Brief Explanations:
- For the first statement, in finance, higher - return investments usually come with higher risks due to factors like market volatility and uncertainty.
- For the second statement, a fixed - rate investment has a pre - determined interest rate for a set period, which is its defining characteristic.
- For the third statement, equity investments are subject to market fluctuations and business performance, and are generally riskier than fixed - rate investments.
Answer:
- Question 1: True
- Question 7: True
- Question 8: False