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Which of the following is an example of a low-risk investment? Stock in a tech startup Real estate Cryptocurrency Government bonds

Pergunta

Which of the following is an example of a low-risk investment?
Stock in a tech startup
Real estate
Cryptocurrency
Government bonds

Which of the following is an example of a low-risk investment? Stock in a tech startup Real estate Cryptocurrency Government bonds

Solução

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SantiagoProfissional · Tutor por 6 anos

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The correct answer is 'D', Government bonds.

Explicação

## Step 1<br />The problem asks us to identify which of the given options is considered a low-risk investment. The options provided are: Stock in a tech startup, Real estate, Cryptocurrency, and Government bonds.<br /><br />## Step 2<br />Let's analyze each option:<br /><br />1. Stock in a tech startup: This is considered a high-risk investment because startups are not established companies and their future is uncertain. They can fail or not perform as expected, leading to a loss of investment.<br /><br />2. Real estate: While real estate can be a good investment, it carries a certain level of risk. The value of real estate can fluctuate based on various factors such as location, market conditions, and economic trends.<br /><br />3. Cryptocurrency: This is also considered a high-risk investment. The value of cryptocurrencies can be highly volatile and can fluctuate rapidly. They are not backed by any physical assets and their value is based on speculation.<br /><br />4. Government bonds: These are considered low-risk investments because they are backed by the government. The government guarantees the return of the principal amount and the interest on the bond. The risk of default is very low, making government bonds a safer investment option.
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