Question

Rank the following find categories from most risky to last risky Lrquity growth fund IL Ralancen sind III Sector fund IV. Mon

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Question : Rank from most risky to least risky

Answer : III, I, II, IV

Explanation

1.

Balanced Funds invests in a mix of stocks and bonds, due to the fund’s mix of debt and equity, the risk is reduced and has less effect of volatility in the fund compared to equity fund.

Therefore equity fund is riskier than balanced Fund  

2.

The sector funds are not diversified and are dependent on the performance of specific sector. If there are any changes in regulations or policies then the funds of those sectors can hit hard.

Therefore sector fund is riskier than equity Fund

3.

Money market fund invests in short-term debt securities such as treasury bills and has very less risk involved with them.

Based on above conclusions the most risky to least risky funds are -

Sector Fund > Equity Growth Fund > Balanced Fund > Money Market Fund

Add a comment
Know the answer?
Add Answer to:
Rank the following find categories from most risky to last risky Lrquity growth fund IL Ralancen...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT