Question

Maurice wants to take $5,000 out of his savings account and invest it in mutual funds. Which trade-off best describes the consequences of his decision? less liquidity in exchange for more risk and more returns less liquidity in exchange for less risk and more returns more liquidity in exchange for more risk and less returns more liquidity in exchange for more risk and more returns

Answer 1

One advantage of a mutual fund is that it is being managed by a group of companies and being invested in several companies. Usually, savings account interest rate is less than investing in a mutual fund. Thus, the answer to this question is "less liquidity in exchange for more risk and more returns".