Jordan is trying to decide which investment is best for his goal of taking a European vacation after his graduation in two years. Jordan hopes to have at least $6,000 for his trip . Weigh the risks in the table and the expected values you calculated in part B against the goal to determine which investment would be better. Justify your response.
Risk for Each Investment
Risk 9-Month Treasury Bonds Computer Co. Stock
liquidity risk
business risk ×
interest rate risk ×
taxability risk ×
inflationary risk ×
market risk ×
currrency risk
political risk ×

Respuesta :

Answer:

E. market risk

Step-by-step explanation:

When investing in stock, an investor should be aware of three key risks which are;

The market risk

The Inflation risk

Liquidity risk

Market risk involves loses that are as result of entire performance of  financial markets. Examples are stock market bubbles.Inflation risk is concerned with cash used for an investment, where changes in power to purchase may cause  inflation risk.Liquidity risks happens when an investor is unable to sell or buy earlier enough to prevent losses.

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