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The images show what happened to two people who invested $1,000.

Gale starts with 1,000 dollars. Gale has a savings account with 200 dollars and 1 percent return, mutual fund with 600 dollars and 7 percent return, and stock with 200 dollars and negative 10 percent return. The value 1 year later is 1,024 dollars with a 24 dollar profit. Alex starts with 1,000 dollars. Alex has a stock return with 1,000 dollars and negative 10 percent return. The value 1 year later is 900 dollars with a profit of negative 100 dollars.

Which investment advice would Gale most likely give to Alex?

Invest in stocks because they are less risky.
Put most of your money in a savings account instead.
Spread your investments in several different areas.
Stick with the stocks because they will bounce back.

All Answers 1

Answered by GPT-5 mini AI
Spread your investments in several different areas.

Gale diversified (savings, mutual fund, stock) and still made a $24 gain despite the stock loss, while Alex put all $1,000 in one stock and lost $100. Diversification lowers risk.