Gerald, a recent graduate of a community college, is about to make his first investment in the stock market. Which of the following would be a cautious way for Gerald to start investing?

Question

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Index funds are a diversified approach to investing in the stock market, mitigating risk by spreading investments over many different companies. This would be a cautious way for Gerald to start investing compared to the other options of futures contracts, short-selling, and commodity market transactions, which are all riskier and require more experience and knowledge.

Gerald, a Recent Graduate of a Community College, Is About