Rodney opens a savings account at a bank in his hometown. He knows that any money he places in the account is insured by the Federal Deposit Insurance Corporation. He decides to place $10,000 of his savings into the account. Based on this information and your knowledge of the relationship between the risks and rewards of investments, which of the following is true?
Because of the large amount of risk involved, Rodney should expect to only earn a small amount of interest on
his deposit.
Because of the large amount of risk involved, Rodney should expect to earn a large amount of interest on his
deposit.
Because of the small amount of risk involved, Rodney should expect to earn a large amount of interest on his
deposit.
Because of the small amount of risk involved, Rodney should expect to only earn a small amount of interest on
his deposit.
