Which investment item carries the least financial risk? (2024)

Which investment item carries the least financial risk?

Explanation: A saving account is described as a bank account where people can save or store their money and earn interest. It is also considered one of the classifications of investment that contains the least risk. It contains minimum exposure to the market that cannot affect the money in the saving account.

What type of investment has the least financial risk?

Which investment tool is considered the least risky?

Explanation: A saving account is described as a bank account where people can save or store their money and earn interest. It is also considered one of the classifications of investment that contains the least risk. It contains minimum exposure to the market that cannot affect the money in the saving account.

Which of these options carries the least financial risk?

Final answer: Certificates of Deposit (CDs) have the least financial risk compared to bonds, futures, and stocks. They are considered low-risk financial assets with fixed interest rates and are FDIC insured, making them a safer investment choice.

Which financial instrument is considered the least risky?

Which asset has the least risk?

Cash and cash alternatives — such as money held in a savings account, money market account, certificate of deposit, or money market funds — carry the lowest risk out of all asset classes, as it is extremely unlikely that you will lose principal held in these vehicles.

What is the least risk portfolio called?

The portfolio having the least risk (variance) among all the portfolios of risky assets is called the global minimum-variance portfolio.

What type of investment has the lowest risk in Quizlet?

Investments with low risk pertains to those with type of accounts that are not directly affected by market fluctuations like stocks or mutual funds. Examples of which are savings account where money is just stored and earns interest (although banks usually have low interest rates), bonds, and money market funds.

Which of the following investments has the lowest risk and lowest return?

Which investment strategy carries the most risk?

Growth investments are for long-term investing. Growth investments usually carry a higher risk than either safety or income investments. Speculation is the riskiest investment. With the high risk usually comes the possibility of higher gains.

What is the safest investment right now?

What is a zero risk portfolio?

A zero-beta portfolio is a portfolio constructed to have zero systematic risk, or in other words, a beta of zero. A zero-beta portfolio would have the same expected return as the risk-free rate.

Which type of investment provides the lowest risk and lowest reward dynamic?

Cash. Cash and cash equivalents are the lowest risk, most liquid asset class, meaning that these assets can be easily accessed and are designed not to incur any significant losses.

What investment has low risk and is long term?

Which one of the following types of investments has the lowest risk and is most predictable?

Since money market funds only invest in very short-term and low-risk securities, they're considered one of the least risky investment vehicles. Most money market funds strive to maintain a net asset value, or NAV, of $1 per share so that investors can treat these funds as cash.

Which type of investment typically carries more risk than safety?

Marketable Debt and Equities Are Risky

Marketable debt is risky. Even though these instruments are bonds, they are quite different from their savings bond cousins. Corporate, municipal, state and federal bonds carry varying levels of risk.

Which investment strategy carries the most risk in Quizlet?

Creative investment strategies involve the highest risk. Aggressive investment strategies involve high-risk investments.

Which investment type has the highest financial risk?

While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking.

What type of investment has the most risk?

What is the safest type of investment?

Which type of investment has the lowest risk, therefore the lowest potential reward?

Savings, CDs, Money Market Accounts, and Bonds

The investment type that typically carries the least risk is a savings account. CDs, bonds, and money market accounts could be grouped in as the least risky investment types around.

What is the best type of investment?

Which investment strategy carries the most risk quizlet?

Creative investment strategies involve the highest risk. Aggressive investment strategies involve high-risk investments.

Are bonds or stocks riskier?

Given the numerous reasons a company's business can decline, stocks are typically riskier than bonds. However, with that higher risk can come higher returns. The market's average annual return is about 10%, not accounting for inflation.