Risk vs. Return Reading Quiz QUESTION 4 of 10 : When should you be willing to move up the investment pyramid and accept additional risk? a) when you have a strong foundation at the base of the pyramid b) when you first begin to invest c) when you are very nervous about losing money d) You should only invest in low risk options.

Question

Risk vs. Return Reading Quiz QUESTION 4 of 10 : When should you be willing to move up the investment pyramid and accept additional risk? a) when you have a strong foundation at the base of the pyramid b) when you first begin to invest c) when you are very nervous about losing money d) You should only invest in low risk options.

Answer 1

a) when you have a strong foundation at the base of the pyramid

Answer 2

The investment pyramid is a concept used to illustrate the relationship between risk and return in investing. The base of the pyramid represents low-risk investments, while the upper levels represent higher-risk investments. Moving up the pyramid implies taking on more risk for the potential of higher returns. It is generally advisable to move up the pyramid only after establishing a strong foundation of low-risk investments to ensure financial stability and minimize the impact of potential losses.

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