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.
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,
Sarah or Amit? Why?

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