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?(1 point)

Question

Responses

low risk, high return, and good liquidity.
low risk, high return, and good liquidity.

low risk, low return, and poor liquidity.
low risk, low return, and poor liquidity.

high risk, high return, and poor liquidity.
high risk, high return, and poor liquidity.

high risk, high return, and good liquidity.

Answer 1

The correct response regarding the risk, return, and liquidity of individual stocks is:

high risk, high return, and good liquidity.

Individual stocks can provide the potential for significant returns, but they also carry a higher level of risk due to price volatility. Additionally, stocks are generally easy to buy and sell, offering good liquidity.