Which of the following lists mutual fund types from lowest potential r

QUESTION

Which of the following lists mutual fund types from lowest potential risk to highest potential risk?

A) balanced < index < sector < money market B) index < balanced < money market < sector C) money market < index < balanced < sector D) sector < index < balanced < money market E) money market < sector < balanced < index   ANSWER

Answer: C
Explanation: C) Money market funds are very conservative and low risk. Index funds reflect long-term averages of a market index and are considered lower risk. Sector funds invest in one particular industry and can be high risk based on various factors impacting the industry.