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Mutual funds are moderate-risk investments offering diversification. Money market accounts are low risk with lower returns. Stocks are higher risk investments.
Mutual funds are considered moderate in terms of investment risk. They offer a diversified portfolio of assets such as stocks and bonds managed by professionals, providing a balance between risk and return.
Money market accounts typically offer lower returns than mutual funds but are also considered less risky. They invest in short-term, liquid securities like Treasury bills and commercial paper, making them a safer investment option.
Stocks, on the other hand, are generally considered higher risk investments due to their price volatility and dependence on market fluctuations for returns.
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