which type of investment would a person with a high risk tolerance likely choose? cd bond futures roth ira

A person with a high risk tolerance would most likely choose futures from the options CD, bond, futures, and Roth IRA.

Quick Scoop: Why futures?

Someone with high risk tolerance is willing to accept big ups and downs in pursuit of potentially higher returns. Among the four choices:

• CD (Certificate of Deposit) – Very low risk, FDIC insured up to limits, low but predictable returns; this suits conservative investors, not high-risk ones.

• Bond – Generally medium risk, usually safer than stocks or futures, with more stable income; better for moderate risk tolerance.

• Futures – High risk, highly volatile contracts whose value can swing quickly up or down, offering both large potential gains and large potential losses; this matches a high risk tolerance profile.

• Roth IRA – This is a tax-advantaged account type , not a single investment; the risk depends on what you hold inside it (stocks, bonds, etc.), so by itself it is not the “high-risk” choice here.

So, in a multiple‑choice style question asking “Which type of investment would a person with a high risk tolerance likely choose? CD, bond, futures, Roth IRA” , the expected answer is futures.

Information gathered from public forums or data available on the internet and portrayed here.