Question

Donnell wants to invest some money that he just inherited. He found that his bank offers a savings account paying a guaranteed .3% rate of return. However, he would like to earn a higher return. Donnell should keep in mind that to earn a higher return on his money he

Answer 1

will have to accept a higher level of risk

Step-by-step explanation:

There is a positive correlation between the level of risk and the potential amount of return. This means that a low risk investment will generate a lower return than a more risky investment. Since Donnell wants to earn a higher return, he will have to invest in a more risky venture.