Question

Which of the following correctly orders the investments from LOWER risk to HIGHER risk? Treasury bond − Stock − Diversified mutual fund Stock − Treasury bond − Diversified mutual fund Treasury bond − Diversified mutual fund – Stock Diversified mutual fund − Treasury bond − Stock

Answer 1

Thank you for this interesting question. 

In the above statement that which of the following correctly orders  the investments from LOWER risk to HIGHER risk?; the correct option is:

           Treasury bond − Diversified mutual fund – Stock 

This is so, because if the producer is relying on personal resources, then it bears more risk than relying on public resources.