Muhammad is considering investing some of his hard-earned cash by opening a certificate of deposit. Muhammad is disappointed to learn that If he invests $500 , he will likely only earn an additional $9 a year from today. So, he decides to invest his funds somewhere that will generate more income for him. Which of the following did Muhammad find unsatisfactory about the certificate of deposit?(1 point)

Question

Responses

The risk of the investment was too high.
The risk of the investment was too high.

The return on his investment was too low.
The return on his investment was too low.

The liquidity of the investment was too low.
The liquidity of the investment was too low.

The liquidity of the investment was too high.

Answer 1

The most appropriate response to Muhammad's dissatisfaction with the certificate of deposit is:

The return on his investment was too low.

This option directly addresses his concern about earning only an additional $9 from a $500 investment, indicating that he found the return unsatisfactory.