1. Marc and Julian are considering the following investments for their portfolio. Help them evaluate each one by weighing the risk versus return. Rank each as low, moderate, or high in each category.

[tex]\begin{center}\begin{tabular}{ |c|c|c|c|c|c| } Investment & Potential Returns & Potential Risk \\Money market savings account & L & L\\ IRA & M & M \\ Stock in a new tech company & H& H \\\end{center}[/tex]

The risk-return tradeoff

The assertions made will follow the risk to returns principle that says the greater the risk the greater the returns.

In the categories Let

L= low

M= moderate

H= high in each category.

Therefore, appropriate ranking will show

[tex]\begin{center}\begin{tabular}{ |c|c|c|c|c|c| } Investment & Potential Returns & Potential Risk \\ Money market savings account & L & L\\ IRA & M & M \\ Stock in a new tech company & H& H \\Mutual fund & M & M \\Five-year CD (2% interest) & L & L \\High-yield five-year bond & H & M\end{center}[/tex]

1. Marc and Julian are considering the following investments for their portfolio. Help them evaluate each one by weighing the risk versus return. Rank each as low, moderate, or high in each category.​

Respuesta :

The risk-return tradeoff

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1. Marc and Julian are considering the following investments for their portfolio. Help them evaluate each one by weighing the risk versus return. Rank each as low, moderate, or high in each category.