QUESTION IMAGE
Question
which investment give you the best chance of earning a decent amount of money without losing it
stocks
bonds
mutual funds
cash
\potential return\ means
the possibility of making a profit
the amount you will be rewarded
the price of a stock you sell for
the price of a stock you buy
Brief Explanations
- For the first question: Bonds are generally considered less risky compared to stocks (which have higher volatility), mutual funds (which can have market - related risks), and cash (which may lose value due to inflation). They offer a fixed income stream and are more likely to return the principal amount (assuming no default by the issuer).
- For the second question: "Potential return" refers to the possibility of making a profit. It is not a guaranteed amount (so not "the amount you will be rewarded"), nor is it related to the specific buying or selling price of a stock.
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- First question: bonds
- Second question: the possibility of making a profit