Investing Answers

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Which investment is best for someone who is likely to need cash soon?

A
mutual fund
B
CD
C
401(k)
D
savings account
2
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Someone who diversifies investments is more likely to

A
increase both risks and returns.
B
offset their losses with gains.
C
reduce both risks and returns.
D
increase liquidity of investments.
3

The image shows Gale's investments during one year. Investments during One Year

Question illustration
A
If she had purchased only the stock and had not diversified her investments, she would have lost money.
B
If she had diversified her investments further, her profits would have been considerably larger.
C
If she had put money in her savings account only and had not diversified, her profits would grow.
D
If she had diversified her investments further, she would have reduced her risk but made less of a profit.

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