Of the Following Investments,which Has the Lowest Risk

question 44

Multiple Choice

Of the following investments,which has the lowest risk?

• A) government bonds
• B) conservative mutual funds
• C) futures
• D) blue chip stocks
• E) junk bonds

---

Definitions:

Voting Stock

Voting stock refers to shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Debt Securities

Financial instruments representing a loan made by an investor to a borrower, typically including bonds, notes, and bills.

Equity Securities

Financial instruments representing ownership in a company, such as stocks.

Investment

The allocation of resources, such as time, money, or effort, in the expectation of generating an income or profit.