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Question: Which of the following investments would be considered a low risk investment?

(Posted by: confused on 2010-09-08 07:19:44)

(a) a new product (b) a federally mandated environmental project (c) A and B (d) none of the above

Answers:

Posted by: John M on 2010-09-08, 07:28:47

B) The federal mandate makes the source of funds much more reliable and it has built in demand. a) Is not going to be judged low risk without a lot more information, so c is also wrong

Posted by: Nishant V on 2010-09-08, 08:01:49

B would be the answer . not sure about returns though

Posted by: InspectorBudget on 2010-09-08, 08:15:21

Knowing how inefficient, corrupt, and messed up most governments are, B would still have risk . In my experience, a LOT of risk. But from a theoretical POV, B would be the answer as the funds are usually already allocated.

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