The correct answer is c. high risk, high return, poor liquidity.
Individual stocks are known for their high risk because their prices can experience significant fluctuations, increasing the chance of investment failure. However, they also have the potential for high returns if the investor chooses the right stocks.
Regarding liquidity, individual stocks generally have good liquidity because they can be easily bought and sold on the stock market. However, compared to other investment options such as bonds or mutual funds, individual stocks have relatively poorer liquidity.
Individual stocks are popular investments that are easy to sell and have the potential to earn significant income for investors. However, they fluctuate wildly in price, increasing the likelihood that an investment fails. What is the risk, return, and liquidity on this type of investment?
a. high risk, high return, good liquidity
b. low risk, high return, good liquidity
c. high risk, high return, poor liquidity
d. low risk, low return, poor liquidity
1 answer
1 answer