Question

Trisha is a single, 35-year-old professional who bought shares for $3,000 in a start-up company. She did that because

she knows the potential benefits and can tolerate the potential disadvantages of that investment
she knows moderate investing guarantees higher returns in the short-term
she knows new companies have government protections against losses
she wants to choose a less risky option at her current situation

Answer 1

she knows the potential benefits and can tolerate the potential disadvantages of that investment

Step-by-step explanation:

Generally buying stocks in a start-up is extremely risky, but can also be extremely profitable. Since Trisha is young and should be earning a medium to high salary, she can afford losing her investment. The risk is huge, but some can tolerate that risk, e.g. imagine a person who bought $3,000 of Amazon's stock 20 years ago is probably made more than a million by now.