Investment 1: Maria keeps $500 in her savings account. It earns 3 percent interest. Investment 2: Sarah buys 100 shares of stock in a new company. She plans to sell them when the price increases by 50 percent. Investment 3: Amit buys 500 shares of a mutual fund that has made money every year for the past five years. 1. Which investor is taking the most risk? Explain why. 2. Whose investment is the most liquid? Explain why. 3. Which investment probably has the highest potential return? Explain why. 4. Who has a higher chance of losing all the money they invested

Respuesta :

Sorry I did not know

Answer:

Most risk: Sarah

Most liquid: Maria

Highest potential: Sarah

Loosing all the money:Sarah

Explanation:

Most risk and higher chance are very similar, since Sarah is investing on shares of stock in a new company the company can go very well and make his shares value to go up earning Maria a lot of money, but it can fail and make her loose her money.

The most liquid means which gives you the most opportunity to take out your money and Maria can do that whenever she wants with a savings account.