12
practice testMultiple Choice

Practice Test

Question 12 • Personal Finance

Jordan invests all money into one stock. What is the main risk?

Answer
A
No return potential
B
High chance of loss
C
Guaranteed growth
D
Fixed income

Explanation

Putting all the money into one stock concentrates the investment in a single company. If that company performs poorly, Jordan could lose a large part of the investment; spreading money across investments can reduce this risk. The main risk is a high chance of loss, choice C.

AI-written and checked against the verified answer.

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