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Which of the following potential investments has the least risk? Real estate Commercial paper Treasury bills...

Which of the following potential investments has the least risk?

Real estate

Commercial paper

Treasury bills

Common stock
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Answer #1

Correct Answer : C) Treasury Bills

Reason : Treasury Bills are issued by government and hence they are having lowest risk as they are backed up by the government.

Real estate has risk as the values are dependant upon demand of property and other economic conditions prevelant in the country.

Commercial paper is a unsecured debt obligation which is issued by banks , this is mostly issue for short term durations. As it is unsecured the risk factor is high.

Common stock also carry a high risk as they are the owners of the company. their returns are not fixed and so is their risks.

In case of any doubt or Issue, please comment below

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