APMacro: Investment Risk

Investment-RiskPeople save and invest their money to receive a return on their savings or investment. Risk comes from the uncertainty about whether you will receive the promised return. The greater the risk you take with your investment, the higher the potential rate of return. Unfortunately, with more risk, it is also more likely that you will lose money. In other words, you can expect a return from taking risks with your money, but you could also take a financial loss. As with any economic decision, there is no free lunch in deciding about investments. Rank each of the investments with 1 representing the lowest risk or reward and 3 representing the greatest risk or reward.

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