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

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

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

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

high risk, high return, and good liquidity.

Answer 1

The best response is:

high risk, high return, and good liquidity.

Individual stocks are known for their potential for significant returns, but they also carry a high level of risk due to price volatility. Additionally, stocks are typically considered to have good liquidity, as they can be easily bought and sold on stock exchanges.