Which of the following investment strategies is likely to involve a higher risk?

Investing in technology startups is typically associated with a higher level of risk due to several factors inherent in the nature of startups. Unlike established companies, technology startups are often in their early phases of development and may not yet have a proven business model or revenue stream. This volatility can lead to significant fluctuations in value, making the investment riskier.

Additionally, many technology startups operate in highly competitive and rapidly changing markets where innovations and consumer preferences can shift quickly, further increasing uncertainty. Investors in startups may also face illiquidity, as it can be challenging to sell shares in private companies compared to publicly traded stocks.

In contrast, investing in government bonds, blue-chip stocks, or utility stocks generally involves less risk. Government bonds are considered one of the safest investments due to their backing by the government. Blue-chip stocks, representing well-established companies with a history of stable earnings, tend to provide steady returns. Utility stocks, known for their consistent dividends and stable demand, also offer lower risk compared to the speculative nature of technology startups.