Certified Senior Advisor (CSA) Practice Test

International stocks are considered higher risk primarily due to the volatility associated with investments that are influenced by global economic conditions, political instability, and currency fluctuations. While domestic bonds, guaranteed pensions, and social security income typically offer more stability. Domestic bonds are generally backed by the issuing government or corporation, providing a lower risk level. Guaranteed pensions provide regular income with minimal risk since payouts are often insured or backed by a pension fund. Social security income is consistent and reliable, making it a secure source of retirement income. In contrast, international stocks can be significantly affected by changes in foreign markets and economic policies, leading to potential large fluctuations in value and greater overall risk in investment returns.