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question 5 - investment risk which investment option has the greatest chance of losing money? circle the correct answer and explain why. a. savings account b. certificate of deposit (cd) c. stocks d. money market account
Savings accounts, certificates of deposit (CDs), and money - market accounts are relatively low - risk investments. Savings accounts and CDs are insured (up to a certain amount by the FDIC in the US), and money - market accounts also have relatively stable values. Stocks, on the other hand, are subject to market fluctuations. The value of stocks can go up or down significantly based on company performance, economic conditions, industry trends, and many other factors. There is no guarantee of the stock's value, and in some cases (such as a company going bankrupt), investors can lose a large portion or all of their investment.
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C. Stocks