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29 November, 01:33

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

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  1. 29 November, 02:22
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    will have to accept a higher level of risk

    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.
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