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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)

Responses

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

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

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

The liquidity of the investment was too high.

1 answer

The response that best reflects Muhammad's dissatisfaction with the certificate of deposit is:

The return on his investment was too low.

He found the earnings from the investment ($9 a year from a $500 investment) to be unsatisfactory, which indicates that he was looking for a higher return on his investment.