which type of investment would a person with a high-risk tolerance likely choose A. CD B. Bond C. Futures D. Roth IRA
Social Studies · Middle School · Tue Nov 03 2020
Answered on
C. Futures
Futures trading involves speculating on the future price movements of assets like commodities, currencies, or financial instruments. It is considered a high-risk investment due to the potential for significant price volatility.
A Roth IRA (option D) itself is not an investment; it's a type of tax-advantaged retirement account. However, within a Roth IRA, individuals can choose various investments, and someone with a high-risk tolerance might opt for more aggressive investment options like stocks.
It's important to note that risk tolerance can vary among individuals, and the choice of investment depends on factors such as financial goals, time horizon, and overall financial situation. It's always advisable for investors to carefully consider their own risk tolerance and consult with a financial advisor before making investment decisions.