Question

Which of the following types of investments would be most appropriate for a person wishing to...

Which of the following types of investments would be most appropriate for a person wishing to take little risk?

A. Government bonds

B. Value stocks

C. Growth stocks

D. Cyclical stocks

E. Blue-chip stocks

Homework Answers

Answer #1

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Answer:

Government bonds are usually viewed as low-risk investments, because the chance of a government defaulting on its loan payment tends to be on the lower side. But defaults can still happen, and a riskier bond will usually trade at a lower price than a bond with lower risk and a similar interest rate.

Other options are incorrect as value stocks growth stocks. cyclical stocks and blue chip stocks have a greater chance of defaulting and higher risk as compared to government bonds

Hence option A

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