Question

Which is true about investments and risk?

Low-risk investments have a high return over the long run.
High-risk investments usually fail.
Safe investments are always somewhat profitable.
Every investment carries some degree of risk.

Answer 1

"Every investment carries some degree of risk." is true.

Explanation in brief:
- Low-risk investments usually give lower expected returns, not high ones.
- High-risk investments do not usually fail — they have higher variability of outcomes.
- "Safe" investments can still lose purchasing power (e.g., after inflation) or have other downsides.
- Even cash or government bonds have risks (inflation, interest-rate, liquidity, or default in some cases), so no investment is completely risk-free.