Which of the following investments carries the most risk?

C. buying stock in a new company, such as an Internet startup

Explanation

In general, investing in stocks is riskier than choice (A), saving money in a bank, or choice (B) buying a certificate of deposit (or CD, as they’re commonly called). Choice (C) a tech startup that has no track record of turning a profit is riskier than choice (D) a well-established company like Microsoft.

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