The investment options span from which to which?

• A. Domestic stocks to commodities
• B. Treasury securities to international stocks
• C. Municipal bonds to cash
• D. Real estate to futures

Answer: (B)

The main idea being tested is recognizing the broad range of investment options from very safe to higher risk. Treasury securities are considered one of the safest investments because they’re backed by the U.S. government and offer predictable returns. International stocks, on the other hand, expose you to global equities with higher risk but the potential for greater returns and diversification benefits across economies and currencies. Together they illustrate the widest spectrum of typical investment options—from a safe fixed-income asset to a broad, riskier equity category.

The other ranges don’t span that same breadth. Starting with domestic stocks omits the very safe end, and ending with commodities, which are volatile and asset-class specific, doesn’t show the same broad risk-return continuum. Municipal bonds to cash stay in the lower-risk territory and miss the stronger growth potential of international equities, while real estate to futures covers high-risk or specialized assets without including the ultra-safe end.