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An investment that is subject to potential danger or hazard from a financial and/or technical standpoint. Although high risk investments have the potential to yield a lucrative return, it can also yield a substantial loss. A prime example of a high risk investment are high risk common stocks.
Wiki User
∙ 13y ago
Wiki User
∙ 10y agoHigh risk investment for high gain means that spending more money earns you more money. Investing in real estate for example is expensive and risky, but if done properly there is potential for a good chunk of money.
Wiki User
∙ 12y ago1. Penny stocks, 2. Gold mines. 3. Dot Coms
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Return on investment and safety of investment?
Return on investment is the amount of profit on the invested money after deducting taxes, safety of investment is the risk factor involved in the investment. Such as risk is high safety of investment is less.
What is meant by a small risk of loss in an investment?
A small risk of loss in an investment means that there is less to lose by gambling in the investment. However, similarly, there is also less to gain.
Does a high risk adverse investor choose a risk fre investment?
You cannot be adverse to risk, but you can be averse to it.
Which type of investment is NOT easily found in the marketplace?
low risk, low returnsmedium risk, medium returnshigh risk, high returnslow risk, high returnsthe answer is LOW RISK, High RETURNS
How can you maintain a balance between high risk and low risk investment?
Diversifying your investments will help maintain a balance between high risk and low risk investments.
What is the difference between a high and a low tolerance for risk?
It's a client's willingness to trade higher rates of return on an investment for the risk of losing part or all of their capital investment.
Is a checking account a high risk investment?
Not at all it's probably one of the lowest risk investment you could make , but it couldn't be a bad idea to check the bank in which you open your account .
Is there a high risk when one is new to investments?
There is high risk when one is new to investments, depending on the type of investment they are making. If it is a savings account, or a government bond, there is less risk than opposed to shares and options.
What does 'No risk no gain' mean?
what is no risk no gain.
What does no risk no gain mean?
what is no risk no gain.
How do you Calculate a Return on an Investment?
The return on investment formula:ROI=(Gain from Investment - Cost of Investment)/Cost of Investment.
The higher the risk the higher the return?
On a long term basis, investor should expect to be rewarded for the level of risk that they are taking. "Low risk" investment should also mean a lower level of volatilty (amount of change in the value of the investment). While "high-risk" (volatility) investments can vary greatly in value in short time frames however they provide the most long term potential for growth.
