Which of the following investments is generally considered higher risk?

Investments that are considered higher risk typically involve a greater potential for volatility and uncertainty in returns. Options that are deemed unpredictable directly align with this definition. Such investments may include speculative stocks, cryptocurrencies, or certain commodities that are subject to rapid changes in market conditions, investor sentiment, and other external factors. Because of the inherent unpredictability and the likelihood of significant fluctuations in value, these investments can result in substantial gains but also substantial losses, thereby categorizing them as higher risk.

In contrast, government bonds, blue-chip stocks, and mutual funds tend to have a more established historical performance and are generally viewed as safer investment options. Government bonds are backed by the government, making them one of the least risky investments. Blue-chip stocks represent established companies with a history of performance and stability, lowering the investment risk. Mutual funds offer diversification, which helps to spread risk across various securities, further mitigating individual investment volatility.