For Informal Investment, the Amount Invested by _______ Is the Highest

question 6

Multiple Choice

For informal investment, the amount invested by _______ is the highest, and the median return expected is ____ times the original investment.

• A) Strangers; 1.5
• B) Friends; 2.0
• C) Venture Capitalists; 1.0
• D) Relatives; 1.0
• E) Work Colleagues; 1.5

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Definitions:

Risk

The possibility of suffering harm or loss.

Lightning Strike

A natural electrical discharge of very short duration and high voltage between a cloud and the ground or within a cloud.

Fireworks

Explosive devices used primarily for entertainment purposes, emitting light, noise, smoke, and various colors when ignited.

Guaranteed Insurability

An insurance policy feature that allows the policyholder to buy additional coverage without proof of insurability at designated times.