Question

May I please get some help? Medal and Fan!

Answer 1

Investment 1: Maria keeps $500 in her savings account. It earns 3 percent interest.
Investment 2: Sarah buys 100 shares of stock in a new company. She plans to sell them when the price increases by 50 percent.
Investment 3: Amit buys 500 shares of a mutual fund that has made money every year for the past five years.
1. Which investor is taking the most risk? Explain why.
2. Whose investment is the most liquid? Explain why.
3. Which investment probably has the highest potential return? Explain why.
4. Who has a higher chance of losing all the money they invested

Answer 2

Which investment do you think is taking the biggest risk?

Answer 3

It wouldn't be Investment 1 because it's guaranteed to earn interest as long as she keeps it in.

Answer 4

It wouldn't be Investment 3: because it's going up a positive trend.

Answer 5

3rd

Answer 6

oh ok

Answer 7

Investment 2 plans to sell her stock once the price is raised by 50 percent. Who's to say that it will ever raise by 50%? There's no guarantee that she'll earn any money. If anything it could go down.

Answer 8

ok

Answer 9

For an investment to be liquid, it has to be easy to sell, an asset that can easily be converted to cash. We can rule out Investment two from being the most liquid, because she may not earn any cash from it, since it's such a big risk.

Answer 10

ok i see

Answer 11

Whose investment is the most liquid?

Answer 12

It's hard to say from my perspective to be honest; Both mutal funds and money in the bank is very liquid however,

Answer 13

I'd say that the bank savings would be more liquid that the mutual funds, since you can easily go into the bank and withdraw the money you have in it. But this is only a logical guess. I don't know this 100%

Answer 14

so 3

Answer 15

Let's skip to number 4 since that's easier than number 3,

Answer 16

The person who is taking the most risk with their investment is the person most likely to lose their money. Since we said investment 2 is the biggest risk, that investment is the most likely to lose its money and value.

Answer 17

ok! I kinda get it
!!

Answer 18

Now number 3,

Answer 19

Number 3 is the tricky one, but I got it,

Answer 20

ok

Answer 21

Normally, the person who takes the biggest risks is the one who gets the biggest return (if the risk goes well)

Answer 22

k

Answer 23

Investment 2 will be sold once it's price increases by 50 percent. Investment one has a increase of 3% each year. 50 percent is greater than 3 percent by far.

Answer 24

yup

Answer 25

It doesn't say an exact number or percent that investment 3 has been going up, but investment two is the best bet, if you're looking into getting a lot of money in your return. Like when you play a lottery, there's a chance that you'll lose, but if you win, you'll get a bigger return in your money, than that 10 dollars you put into your mega millions lottery ticket.

Answer 26

ok

Answer 27

so would you say 3? or 2?

Answer 28

Investment 3 also doesn't give us ANY numbers except the 500 shares. For all we know, it could have increased by like 3 dollars each year.

Answer 29

I would say investment 2 has the most potential for a big return.

Answer 30

ok