Individual stocks are popular investments that are easy to sell and have the potential to earn significant income for investors. However, they fluctuate wildly in price, increasing the likelihood that an investment fails. What is the risk, return, and liquidity on this type of investment?
a. high risk, high return, and poor liquidity
b. high risk, high return, and good liquidity
c. low risk, high return, and good liquidity
d. low risk, low return, and poor liquidity
The correct answer is:
b. high risk, high return, and good liquidity