Which statements describe the role of risk in making investment decisions? Check all that apply.
When discussing investments, “risk” is the possibility of little or no return.
Risk is an element to consider when investing in stocks.
Low risks typically have high returns.
The higher an investment’s risk, the greater its potential return will be.
When making an investment, profits are always guaranteed.

Choosing an investment It refers to how a company's finances are invested in various assets in order for the company to make the maximum potential return for its investors.

Explanation:

Options a, b, and d are the correct answers

The degree of potential financial loss and uncertainty associated with an investment choice is referred to as risk. Therefore, “risk” refers to the possibility of receiving a low or no return. When investing in stocks, there is a risk factor to consider. The larger the risk of an investment, the higher the possible reward.

Option c is incorrect;

because higher risks always reap higher returns, therefore low risks will not harvest higher returns.

Option e is incorrect;

investment is never a clear golden shot, there is no possibility that an investment decision will always guarantee a profit, this is a misleading notion about investment.

Therefore, options a,c and d are best suited for the question due to their supportive correctness for the question. But options c and e are incorrect.

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