question archive Which of the following is a good investment for the scenario listed below? Below are various investment options: o Public Company Stock o Government Bonds o Certificate of Deposit o Private Equity Investments o Commodities (Gold, Silver, Copper, etc
Which of the following is a good investment for the scenario listed below? Below are various investment options: o Public Company Stock o Government Bonds o Certificate of Deposit o Private Equity Investments o Commodities (Gold, Silver, Copper, etc
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Which of the following is a good investment for the scenario listed below?
Below are various investment options:
o Public Company Stock
o Government Bonds
o Certificate of Deposit
o Private Equity Investments
o Commodities (Gold, Silver, Copper, etc.)
o Mutual Funds
o Option Contracts
o ETF Funds
o Foreign Currency
1. Markets around the world are experiencing high volatility. You are afraid of potentially losing earnings from your past investments. From the list above, what investment choice do you believe is the safest route to take during periods of high market volatility?
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Government bonds is the investment choice that is the safest route to take during periods of high market volatility because they have relatively low risk compared to other investment options.
Step-by-step explanation
Government issued bonds allow investors to lend money to the government and get interest payment as compensation. Typical government bonds have fixed payments and a predetermined maturity date. Government bonds are relatively stable and have low price volatility making it the preferred investment choice during times of high market volatility. Despite government bonds paying low interest rates as compared to other investment options, they carry low risk as there is less likelihood that a government can default on its obligation.
