Cody has invested $12,000 total. He has invested $3,000 in stocks, $2,000 in a certificate of deposit, and $5,000 in government bonds. Cody’s stocks are currently performing poorly. He has purchased $2,000 worth of an automotive company’s stock, and its value has steadily dropped over the last year. He is reluctant to sell the stock because he is worried about how much money he has already invested. Which investment practice is Cody following? Which investment shortcoming has he failed to avoid? Which step should Cody take to improve his investment portfolio? brainly

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Answer:

Diversifying investments, Focusing on sunk costs, and sell the failing stock

Explanation:

Right on edge

Diversifying investments, Focusing on sunk costs, and sell the failing stock.

Which is an example of a high-risk investment?

  • While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Structured products.

Which one of the following types of investments potentially has the highest risk and most likely a higher rate of return?

  • Stocks, bonds, and mutual funds are the most common investment products.
  • All have higher risks and potentially higher returns than savings products.
  • Over many decades, the investment that has provided the highest average rate of return has been stocks.

Which one of the following types of investments has the lowest risk and lowest rate of return?

  • Some that are considered the safest also generate the least interest (or returns).
  • The investment type that typically carries the least risk is a savings account.

What is a low risk investment?

  • Low Risk Investments are investments that are inherently safer than their counterparts.
  • Stocks are low risk compared to options.
  • The right is to buy or sell an asset on a specific date at a specific price which is predetermined at the contract date.

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