When their income falls during economic downturns

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Risk and Return. Why do some investors pursue higher-risk investments when their income falls during economic downturns? What is wrong with this strategy?

Some investors pursue higher-risk investments in a weak economy to: (Select the best answer below.) A. make up for limited income. B. save for retirement. C. keep their money out of the banks and put it in safe investments. D. take advantage of market conditions.

The fault with this strategy is that: (Select the best answer below.) A. the higher returns are only guaranteed in a weak economy. B. the higher returns are due to the lower risk. C. it may be difficult to find higher-risk investments in a weak economy since most people are following the same strategy. D. the higher returns are due to the higher risk.Risk and Return.

Reference no: EM131882431

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