The Free Enterprise System Quick Check

Question

3 of 53 of 5 Items
Question
Investors are often presented with risky investment opportunities. While high risk is typically avoided by savvy investors, which of the following would the ideal risky investment offer?(1 point)
Responses

lower returns and lower liquidity than other investments
lower returns and lower liquidity than other investments

lower returns and higher liquidity than other investments
lower returns and higher liquidity than other investments

higher returns and higher liquidity than other investments
higher returns and higher liquidity than other investments

higher returns and lower liquidity than other investments

Answer 1

The ideal risky investment would typically offer higher returns and lower liquidity than other investments. High-risk investments often come with the potential for higher returns, but they may not be as readily convertible to cash as safer investments. Therefore, the correct response is:

higher returns and lower liquidity than other investments.