Investors are often presented with risky investment opportunities. While high risk is typically avoided by savvy investors, which of the following would the ideal risky investment offer?(1 point)

Question

Responses

higher returns and lower liquidity than other investments
higher returns and lower liquidity than other investments

higher returns and higher liquidity than other investments
higher returns and higher liquidity than other investments

lower returns and lower liquidity than other investments
lower returns and lower liquidity than other investments

lower returns and higher liquidity than other investments
lower returns and higher liquidity than other investments

Answer 1

The ideal risky investment would typically offer higher returns and higher liquidity than other investments.

Risky investments are associated with the potential for higher returns due to their volatility. Additionally, higher liquidity allows investors to enter and exit investments more easily, making them more attractive despite the associated risks.