Question

You are looking to invest some of your money. You are presented with two investments. Both offer the same risk with the same amount of liquidity. What additional information do you need to decide on an investment? (1 point)
A. You need to know how the money will be invested.
B. You need to know the return on each of the investments.
C. You need to know how easy it will be to get your money out of the inves
D. You need to know the chances you will lose money.

Answer 1

B. You need to know the return on each of the investments.

If risk and liquidity are the same, the deciding factor is the expected return (or yield) — you should choose the investment with the higher expected/actual return.