Which of the following securities has the greatest investment risk?
A.
Blue chip stocks
B.
Corporate bonds
C.
Technology stocks
D.
Government bonds
The Answer Is:
C
This question includes an explanation.
Explanation:
Technology stocks are considered high-risk investments due to their volatility and sensitivity to economic cycles, regulatory changes, and technological advancements. While they may offer significant growth potential, they carry greater risk than blue chip stocks, corporate bonds, or government bonds.
C is correct because technology stocks are subject to high volatility and risk.
A is incorrect because blue chip stocks are generally stable and lower-risk.
B is incorrect because corporate bonds carry moderate risk, depending on the issuer’s creditworthiness.
D is incorrect because government bonds are considered low-risk due to the backing of the issuing government.
[Reference: SIE Study Guide, Chapter 6: Investment Risks, , , , , ]
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