Question

Understanding the likelihood of failure is part of understanding the
risks
.

An investment will grow faster with a monthly
simple
interest rate.

Investments with more liquidity include
.

Investments with less liquidity include
.

Answer 1

Here are concise answers/corrections and examples:

1) "Understanding the likelihood of failure is part of understanding the risks." — True. That likelihood is the probability component of risk (e.g., probability of default or loss).

2) "An investment will grow faster with a monthly simple interest rate." — False as written. Simple interest does not compound; to grow faster you want a higher rate or more frequent compounding. The correct phrasing: "An investment will grow faster with a monthly compounding (compound) interest rate than with the same nominal rate compounded less frequently or paid as simple interest."

3) "Investments with more liquidity include" — examples: cash, checking/savings accounts, money market funds, Treasury bills, short-term government bonds.

4) "Investments with less liquidity include" — examples: real estate, private equity, venture capital, collectibles/art, certain corporate bonds, restricted stock or retirement accounts with withdrawal penalties.