Which of the following correctly orders the investments from lower risk to higher risk?

The correct answer is Treasury Bond-Diversified Mutual Fund–Stock.

Further explanation:

Treasury bond is fixed interest debt security provided by the United State of America government to raise funds to finance for completing the requirements. Agency bond are the safest investment compare to Treasury bond for their high liquidity and low risk. The minimum time span for maturity in Treasury bond is 10 years and it can extend to 30 years. The Treasury bond has interest semiannually till the maturity and after that face value of the bond is given to the owner. The minimum denomination of Treasury bond is $1000.

Since the Treasury bond is backed up by the US government so it has low risk and have high faith on Treasury bond. The diversified mutual fund have wide range of security that makes it more secure to lesson the risk in the security. The risk is high if the company’s stocks drops then your stocks in that company also drops down.

Learn more:

1. Minimum payment of credit card

link

2. Charging fee in case of credit card

link

3. Consequences of non-payment of monthly credit card payment

link

Answer details:

Grade: College

Subject: Business Studies

Chapter: Mutual Fund

Keyword:

Treasury bond, diversified mutual fund, stock, lower, higher, risk, interest, debt, security, US government, agency bond, liquidity, time, 10 years, 30 year, denomination, company

answertrue;