Certain return without any risk

Reference no: EM1352134

Many potential investors feel CD's are safe investments as well. Certificates of Deposit (CD's) offers varying interest rates based on a certain time period of investment. Inflation could certainly represent an impact to purchasing power and impact the return of your investment although probably minimal given a short-time period. An additional risk involves penalty fees (i.e. early withdrawal, etc) which can erode your promised return significantly.

Is there such a thing as guaranteed returns? Can banks guarantee investors a certain return without any risk?

Reference no: EM1352134

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