Ross 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. Ross should keep in mind that to earn a higher return on his money he:
A)will have to invest overseas.
B) should invest in a business that has a very stable and predictable rate of return.
C)will probably have to accept a higher level of risk.
D)will probably have to engage in illegal activities.

Question

Quizplus · Accepted Answer

To earn a higher return on his money, Ross will probably have to accept a higher level of risk. Investing in a savings account or other low-risk options may provide guaranteed returns, but they will typically not be as high as the returns available from riskier investments. Ross will need to carefully consider the level of risk he is willing to take on before choosing an investment option. Options that have higher potential returns may also have higher potential risks.

Ross Wants to Invest Some Money That He Just Inherited