Answer on the diagram above, which investment involves the greatest degree of risk?

a.

real estate

b.

collectibles

c.

corporate bonds

d.

certificates of deposit

The correct answer is B) collectibles.

Based on the diagram above, the investment that involves the greatest degree of risk is collectibles.

On the other hand, the investments that involve the lesser degree of risk are Certificates of Deposits, saving accounts, and cash. When we are talking about financial terms on investments, a collectible is an object that has more value with the pass of time because it is one of a kind, its rare or the market demands the object so much. In the case of the pyramid, Gemstones and collectibles involve the greatest degree of risk because they are not so easy to sell, people do not always trust the origin of the objects, and if the object or gem has scratches, it loses its value dramatically.

d is the best answer for this question.

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