Ross wants to invest some money that he just inherited. he found that his bank offers a savings account paying a guaranteed 3% rate of return. however, he would like to earn a higher return. ross should keep in mind that to earn a higher return on his money he: . will have to invest overseas. b. should invest in a business that has a very stable and predictable rate of return. c. will probably have to accept a higher level of risk. d. will probably have to engage in illegal activities.

(C) will probably have to accept a higher level of risk

Explanation:

Investing usually involve a trade-off between risk and return. Thus, relative to the guaranteed 3% rate of return offered by his bank, he will need to accept a higher level of risk to earn a higher return on his money.

Option A is incorrect because investing overseas may not earn a higher return, especially if the investment is in an oversea sovereign asset. Option B is incorrect because investing in a business with a very stable and predictable rate of return will likely yield a lower or similar rate of return as the bank savings account due to its low level of risk. Option D is incorrect as engaging in illegal activities does not necessarily guarantee a higher rate of return on a consistent basis.

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