Sabina's financial advisor tells her that investing in stocks for a new start-up company has a high rate of risk.
What does that mean?
○ Even if stock prices go up, Sabina will not make money from her investment.
There are few investors, so Sabina has more responsibility for the company's success.
There is a large chance that her investment will not reach the expected rate of return.
Sabina's money will double in value due to the investment.



Answer :

Final answer:

Stock market investments offer high returns over time but also come with high risks, especially in the short term.


Explanation:

The high returns of stock market investments refer to a high average return over several years or decades, while the high risk implies fluctuations in the rate of return within shorter timeframes. Investing in stocks carries risks, especially in the short run, due to market fluctuations.


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