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What is one major drawback of high-return investments compared to low-return investments?.

Sagot :

asarwar

The one major drawback of high-return investments as compared to low-return investments is that 'high-return investments have a greater risk of failing'.

Risk is absolutely fundamental to investments, but there are no perfect measurements of risk. Risks are categorized as high-return investments and low-return investments.

  • A high-return investment refers to the risk for which there is either a large percentage chance of loss of capital or a relatively high chance of a devastating loss.
  • A low-return investment refers to the risk with less at stake, either in regard to the amount invested or the significance of the investment to the portfolio. There is also less to gain, either in regard to the potential return or the potential benefit bigger term.

You can learn more about risk at

https://brainly.com/question/14993973

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