Which of the following is considered a low-risk investment?

A Certificate of Deposit (CD) is considered a low-risk investment primarily because it offers a guaranteed return on the principal amount deposited, provided that the funds are left in the account for a designated period known as the term. Banks and credit unions typically issue CDs, and they are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per depositor, which adds an extra layer of security. Since the returns are fixed and the risk of losing principal is minimal if the investment is held to maturity, CDs are favored by conservative investors looking to preserve capital.

While stocks, real estate, and futures can potentially yield high returns, they also carry significant risks, including market volatility, price fluctuations, and economic downturns, which can result in financial losses. This inherent risk makes these options less stable compared to the predictability and security that CDs offer.