Arrange the Following Five Stock Funds in Order from the Highest

question 70

Essay

Arrange the following five stock funds in order from the highest risk to the lowest: index fund, capital appreciation fund, technology sector fund, income fund, growth stock fund.

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Definitions:

Bonds

Long-term instruments of debt issued by corporations or governments, promising to pay back the principal along with interest at a future date.

Equity Securities

Financial instruments that represent an ownership interest in a company, such as stocks.

Money-Market Funds

Investment funds that invest in short-term debt securities with the goal of providing high liquidity and low risk.

Treasury Bills

Short-term government securities with maturities of one year or less, used as a tool for managing short-term liquidity.