Which statements describe the role of risk in making investment decisions? Check all that apply.When discussing investments, “risk” is the possibility of little or no return.Risk is an element to consider when investing in stocks.Low risks typically have high returns.The higher an investment’s risk, the greater its potential return will be.When making an investment, profits are always guaranteed.
Answer
A
When discussing investments, “risk” is the possibility of little or no return.
B
Risk is an element to consider when investing in stocks.
C
Low risks typically have high returns.
D
The higher an investment’s risk, the greater its potential return will be.
E
When making an investment, profits are always guaranteed.