which is true about investments and risk?\nlow-risk investments have a high return over the long…
which is true about investments and risk?\nlow-risk investments have a high return over the long run.\nhigh-risk investments usually fail.\nsafe investments are always somewhat profitable.\nevery investment carries some degree of risk.
Answer
Brief Explanations:
- Low-risk investments typically have lower long-term returns, not high ones, as risk and return are positively correlated in investing.
- High-risk investments have a higher chance of loss but do not usually fail; they offer the potential for high returns alongside elevated risk.
- Safe investments are not always profitable (e.g., inflation can erode the value of low-risk assets like some bonds, leading to negative real returns).
- All investments carry at least a small degree of risk, whether it's inflation risk, default risk, or market volatility, even the most "safe" options.
Answer:
Every investment carries some degree of risk.