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2) Carlos wants to invest money for two years. He is risk-averse, but wants to earn the best rate of return in

that time period. Of the choices listed, Carlos would be MOST likely to invest in

A) stock-based mutual funds.

B) certificates of deposit.

stocks.

D) bonds.


Sagot :

A stock-based mutual funds is the averse investment that Carlos would be most likely to invest on.

What is a risk averse person?

A risk averse person is someone who does not like taking too much risk, it is an opposite of risk-taker.

The stock-based mutual funds is the risk-averse investment and yield only an average-return compared to other investment.

Therefore, the Option A is correct.

Read more about risk averse

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