Ross wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .5% rate of return. However, he would like to earn a higher return. Ross should keep in mind that to earn a higher return on his money he:
A) will have to invest overseas.
B) should invest in a business that has a very stable and predictable rate of return.
C) will probably have to accept a higher level of risk.
D) will probably have to engage in illegal activities.

Question

Quizplus · Accepted Answer

To earn a higher return on his money, Ross will probably have to accept a higher level of risk. Investing in riskier assets often leads to higher potential returns, but also greater potential losses. It is important for Ross to consider his risk tolerance and investment goals before making any investment decisions. Options such as investing overseas or engaging in illegal activities are not ethical or legal, and investing in a stable business may not necessarily lead to higher returns.

Ross Wants to Invest Some Money That He Just Inherited