Investments with high rates of return frequently come with high levels of risk.
Investments are sums of money used to purchase assets with the expectation that their value will increase over time. A present resource, such as time, money, or effort, must be lost in order to invest. The goal of investing in the financial realm is to make money from the asset that is being used.
High-risk investments have a higher potential of producing higher returns than other types, but they also pose a larger risk to your money. In other words, high-risk investments may yield big returns if everything goes according to plan. You could, however, lose everything you put in if something goes wrong.
A high-risk investment is one where there is a higher-than-usual chance of underperformance or losing all or part of the invested amount. In exchange for assuming the equivalent level of risk, these investment options typically provide investors the possibility to make bigger rewards.
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