Which investment advice would Gayle most likely give to Alex? Avoid investing in stocks because they can be risky. Put most of your money in a savings account instead. Spread your investments in several different areas. Stick with the stocks because they will bounce back.

Accepted Solution

Solution:Investment means you want your money to increase i.e to increase your wealth.For that out of the options given1. Stocks are good option  for proceeds.But yes they are risky, because stock market totally depends on demand of that good at that period of time. 2. Saving account does not gives you high yield.So it is not a good option to increase your investment.So , the correct option is (C) : to spread your investments in several different areas.There is minimum chance of loss, because if investment are of different types and in different areas , not all of them will go down at the same time.