"By diversifying your investments" is the way among the choices given in the question that you can maintain a balance between high-risk and low-risk investments.
Diversifying your investments will help maintain a balance between high risk and low risk investments.
Money markets are considered a low risk, low yield investment. They usually pay better than simple interest but, because the risk is small they don't pay as well as higher risk investments. Those high risk investments can also lose your money for you a lot faster.
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
Investment which contain lower level of exposure to risk as compared to other investments like Bank deposits or Treasury notes etc. With that it usually also has low level of interest as compared to other products available
Diversifying your investments will help maintain a balance between high risk and low risk investments.
"By diversifying your investments" is the way among the choices given in the question that you can maintain a balance between high-risk and low-risk investments.
Diversifying your investments will help maintain a balance between high risk and low risk investments.
FALSE
Money markets are considered a low risk, low yield investment. They usually pay better than simple interest but, because the risk is small they don't pay as well as higher risk investments. Those high risk investments can also lose your money for you a lot faster.
low risk investments offer a good to high rate of return with very little change of loosing money. Real estate, other real property, and mutual funds are examples.
There are many different low-risk short term investments, a few of these include short term bond funds, online savings accounts, government bonds and money market mutual funds.
Investment which contain lower level of exposure to risk as compared to other investments like Bank deposits or Treasury notes etc. With that it usually also has low level of interest as compared to other products available
Investing in real estate is always risky. What investors could do is how to minimize and overcome risk, and that is how property investors play the game and grow their businesses / investments.
If you are planning to invest some money then you need to know the risks that you are going to take. Low risk investments include long term savings accounts or premium bonds which give you a low return but you are unlikely to lose your money. High risk investments include shares where there is a greater chance of you making a loss but you could also make big gains.
The risk of a government bond is minimal, though the return from the government bond is very low compared to other lucrative bonds available in the market.When you opt for more return, there is more risk. Whereas though in government bond, the return is low, your investment is well secured and risk ratio is almost nil.
Low risk