Which is an example of a high-risk investment? stock in a start-up company bond cds from an insured bank 401(k)

The option A is correct.  

Stock in a start-up company is an example of high-risk investment.  

Further Explanation:

High-risk investment is a type of investment that has a high risk and high return. The investment may grow beyond the expectation, the investor will earn a huge profit. The high-risk investment may fall beyond the expectation, the investor will incur a huge loss.  

Justification for the correct and incorrect

A.

Stock in a startup company: This option is correct.

The startup company does not have a fixed share price. If the company may grow, the share price goes up. If the company may not grow, the share price goes down. This is a type of high-risk investment.  

B.

Bond: This option is incorrect.

The bond pays a fixed interest on the investment. As there is no risk, this is not a high-risk investment. Bond is a risk less investment.  

C.

CDs from an insured bank: This option is incorrect.  

The full of from of CDs is a certificate deposit. As this investment is insured by the bank, there is no risk. This is the incorrect option.  

D.

401k plan: This option is incorrect.

401k plan is a type of retirement account that has been opened by the employers. This does not have any type of risk associated with it.  

Learn more:

1.Learn more about retirement

2.Learn more about life insurance

3.Learn more about negotiating the plan

Answer details:

Grade: Middle School

Subject: Accounting

Chapter: Investment

Keywords:

high-risk investment, 401k plan, stock,  company, startup, high risk, expectation, may grow, bond, CDs from an insured bank, type of investment.  

the answer is true.  i do believe this is the answer because of the amount of wrecks people get into each year.  if you double this with avoiding those so said wrecks, that would make you a "skilled" driver.