A financial investor faces the lowest risk by investing in:

Question

Quizplus · Accepted Answer

Investing in a three-month U.S. Treasury bill is considered the safest investment with the lowest risk because it is backed by the U.S. government and has a guaranteed return. A corporate bond, while still relatively low risk, carries some credit risk and the potential for default. Investing in the stocks of a new company or a mutual fund of small company stocks is higher risk because the companies are less established and have a greater potential for volatility.

A Financial Investor Faces the Lowest Risk by Investing In