Asked by Name
7.
Freddie is a beginning investor. Although he doesn't know much about investing, he doesn't want to just save money in his checking or savings account. Based on what you know about Freddie, which investment plan would you recommend he choose?
A.
Guaranteed
B.
High risk
C.
Medium risk
D.
Risk pyramid
All Answers 1
Answered by
GPT-5 mini
AI
D — the risk pyramid.
As a new investor who doesn’t know much, Freddie should use a diversified, risk-tiered approach: keep most money in low-risk/guaranteed investments, allocate a smaller portion to medium-risk for growth, and only a tiny amount to high-risk. This protects principal while giving him some return and learning room.
As a new investor who doesn’t know much, Freddie should use a diversified, risk-tiered approach: keep most money in low-risk/guaranteed investments, allocate a smaller portion to medium-risk for growth, and only a tiny amount to high-risk. This protects principal while giving him some return and learning room.
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