4. Which of the following is a disadvantage of investing in a commodity? You have a higher risk because prices change. You need a minimum of 5000 to invest. Your investment is FDIC insured. You have diversification into different areas.

Question

4. Which of the following is a disadvantage of investing in a commodity? You have a higher risk because prices change. You need a minimum of 5000 to invest. Your investment is FDIC insured. You have diversification into different areas.

Answer 1

The correct answer is: You have a higher risk because prices change.Explanation: Investing in commodities can be risky due to the volatility in prices. Unlike stocks or bonds, commodities are subject to market forces and can experience significant price fluctuations based on supply and demand, geopolitical events, and other factors. This higher risk is a disadvantage for investors who may not be prepared for such volatility.

Question

4. Which of the following is a disadvantage of investing in a commodity? You have a higher risk because prices change. You need a minimum of 5000 to invest. Your investment is FDIC insured. You have diversification into different areas.

Solution

Resposta