answersLogoWhite

0

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.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What do I need to do to have diversified investments?

What one needs in order to have diversified investments is risk-taking. You must be willing to accept the risk that comes with diversified investments.


What is one of the risk of being a stockholder?

Stockolders are not guaranteed a return on their investments.


What are some high risk auto insurance companies in New Jersey?

If one is looking for high risk auto insurance companies in New Jersey, one could try the New Jersey Manufacturers Insurance Company. The IFA Auto Insurance is also worth a look.


What are the risks and benefits of buying junk bonds?

One advantage of purchasing junk bonds is it allows one to diversify investments over a larger group of different assets. The biggest benefit is they carry a high yield. However, junk bonds are also very high risk.


Do you know of any retirement saving plans where you can get a high amount of return?

There is no guarantee of returns on a retirement account. The funds are diversified over a variety of investments to assure growth. The higher risk investments stand to gain the most and at the same time, stand to lose the most. There is no one investment guaranteed to bring a specific, "high amount of return." If there were, everyone would be vested in it.


What are some of the investing basics one should know?

If you are planning to invest some money then you need to know the risks that you are going to take. Low risk investments include long term savings accounts or premium bonds which give you a low return but you are unlikely to lose your money. High risk investments include shares where there is a greater chance of you making a loss but you could also make big gains.


How does risk tolerance impact investing decisions?

Risk tolerance significantly influences investing decisions by determining the types of assets and strategies an investor is willing to pursue. Individuals with a high risk tolerance may opt for volatile investments like stocks or cryptocurrencies, seeking higher potential returns. Conversely, those with a lower risk tolerance might prefer more stable investments, such as bonds or dividend-paying stocks, to protect their capital. Understanding one's risk tolerance helps investors align their portfolios with their financial goals and emotional comfort levels.


Is it true that One advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk?

true


Name two banks which offer high yield investments.?

Scotiabank and Standard life investments both offer high yield investing. To find out which one is best for you i suggest you visit your nearest branch.


What does high risk high return investments mean?

Investments that have a very high risk tend to pay out a lot more and those that have a low risk have reliable low pay-outs. For example:A Certificate ofDeposit (CD) or a savings account is considered low risk, low return. If you put your money in one, there will be a low rate of return (interest paid to you), but you will gain money on the investment. It just won't be a lot.Stocks are usually considered high risk high return because you spend a lot of moneywithout knowing the payout, but if everything goes through you will get a high return (payout)Broken down, you might say that new company has stock priced at $1 per share; if you buy 1 share at $1 and the value increases to $25 over time, you would only make $24. If you take the same example, but you buy 1000 shares (spending $999 more) and the stock increases to $25, you would make $25,000. A much bigger risk (because the company could have gone bankrupt and you could have lost it all), but worth it to potentially make $24,775 more.


How can one effectively mitigate risk in a business setting?

One can effectively mitigate risk in a business setting by conducting thorough risk assessments, implementing proper risk management strategies, diversifying investments, maintaining financial stability, and staying informed about industry trends and regulations.


Why is it important to do comparsions about money investments?

There are various benefits or reasons why it is important to do comparisons about money investments. One, is to find out which product suits you in relation to risk and affordability and also to check which plan has the best returns.