Which of the following statements is true with regard to the risk of investments?
A) There is very little risk in an IPO since returns often exceed 20% in the first day.
B) Mutual funds containing mostly large stocks are more risky than mutual funds containing smaller stocks.
C) If you prefer less risk, purchase a bond issued by a successful and established firm.
D) There is little risk in purchasing land as an investment since the value of land always appreciates over time.
Answer: C
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