From a risk standpoint, stocks are considered the riskiest investments, followed by mutual funds, preferred stock, and ETFs. Bonds represent a lower-risk investment.

Question

Quizplus · Accepted Answer

Stocks are considered the riskiest investments because their value can fluctuate greatly and is dependent on the performance of the company. Mutual funds, preferred stock, and ETFs also have some level of risk, but generally not as much as individual stocks. Bonds are typically considered a lower-risk investment because they provide a fixed income and are generally less affected by market fluctuations.

From a Risk Standpoint, Stocks Are Considered the Riskiest Investments