Question

Which investment is the riskiest, but has the potential to earn you the most money?

Savings Account
Stocks
Treasury Bonds
Municipal Bonds

Answer 1

@mathmate do you know anything about this?

Answer 2

My lesson says that they are all low risk so it doesn't help me any....

Answer 3

1. In general, the riskiest investment that gives the highest \(potential\) return, subject to favourable market conditions. If conditions are not favourable, you can actually lose money, and in some cases, lose ALL of your money.
Examples of such investments are options, stocks, futures, commodities, etc. However, each investment carries an estimable amount of risk, based on the nature of the investment. For example, precious metal exploration generally carry risk, depending if they found anything in the explorations. Blue chip stocks are generally stable.
2. Treasury and Municipal bonds are usually quite stable and predictable. In fact, in risk terms, they are considered almost good as cash.
3. Savings account is not only almost risk free, and with predictable return. The only risk is when the institution goes under. If business is done with a reputable bank, the risk is very low...so is the return.

This should be enough for you to decide what to do.

Answer 4

thank you Mathmate, I know what it is now :D

Answer 5

You're welcome! :)