Francisco and older gentleman who is typically very conservative in his approach to Money Management thinks he wants to invest some of his money in stocks because he heard doing so can generate good returns. What should francisco know before he begins?

A. stock Investments promise a guaranteed return

B.stock investment rarely generate a better return than a savings account

C. stocks are riskier than many other types of Investments

D.people are not able to choose which stocks to invest in

Question

08-03-2022
Business

contestada

Francisco and older gentleman who is typically very conservative in his approach to Money Management thinks he wants to invest some of his money in stocks because he heard doing so can generate good returns. What should francisco know before he begins?

A. stock Investments promise a guaranteed return

B.stock investment rarely generate a better return than a savings account

C. stocks are riskier than many other types of Investments

D.people are not able to choose which stocks to invest in

Respuesta :

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jaquelinefvr jaquelinefvr · Answer 1 · 2022-03-17T10:57:54+01:00

Before you start investing some of your money in stocks, Francisco should know that stocks are riskier than many other types of investments.

Why are stocks riskier than other investments?

This is due to the non-obligation to pay dividends that a company must make to the investor, not giving him the security therefore that the shares will bring him extra income.

Therefore, diversification of the investment portfolio is indicated to maintain the balance between risk, liquidity and profitability between each stock, spreading its risk between different types of applications that have different behaviors.

So the correct answer is:

C. stocks are riskier than many other types of Investments

Find out more about stocks here:

https://brainly.com/question/25818989