Ross wants to invest some money that he just inherited.He found that his bank offers a savings account paying a guaranteed 3% 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. This is because higher returns are usually associated with higher risk investments. Investing overseas, investing in a business with a stable rate of return or engaging in illegal activities are not recommended or legal options.

Ross Wants to Invest Some Money That He Just Inherited