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Alinara
5 days ago
9

Sandy is a personal financial planner at Pro-Future, Inc. Pro-Future is a financial company that focuses on personal and busines

s financing. When potential customers come to Sandy for financial advice, she first determines their investment goals in order to create a financial plan that fits their needs. Once she has created a suitable financial plan for a customer, Sandy gives her clients a pamphlet with suggestions for helping to accumulate the amount of money that they need.
Advice about risk is given to all of Sandys clients. Sandy also makes strategic financial plans for each of her customers, which helps them to track and achieve their financial goals.Refer to Pro-future, Inc. Why would Sandy consider risk to be a good thing?a. The higher the risk, the higher the rate of investment.b. The higher the risk, the larger the possible return.c. The lower the risk, the lower the rate of investment.d. The higher the risk, the lower the possible investment.e. The lower the risk, the larger the possible return.
Business
1 answer:
marusya05 [3.4K]5 days ago
8 0

Answer:

d. A higher level of risk corresponds to a smaller potential investment.

Explanation:

Regarding speculation, risk is defined by the variability of returns. The discrepancy between expected outcomes and actual results is referred to as risk. In this instance, Sandy believes there exists a positive relationship between the likelihood of risk and returns. For instance, if the risk is elevated, the chance of achieving returns rises. Conversely, reduced risk implies lower chances of earning returns.

Sandy prefers to assert that with elevated risk comes lesser investment possibilities, since the fluctuation of returns is substantial. This suggests that investors may aim for guaranteed returns rather than uncertain but potentially larger yields. In the realm of investments, it is a common question; some may agree that higher risk leads to lower maximum investments.

Thus, the answer is option D.

If a statement claims that greater risk leads to larger potential returns, it does not guarantee that the investor will indeed realize larger returns with their investments. The chances might be present for larger earnings, but obstacles also accompany such opportunities.

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