Can you explain the risk-return trade-off with common stocks?
What will be an ideal response?
Answer: Stocks have more risk than other investments, but at the same time have more potential return associated with them. By diversifying your portfolio, you reduce the risk of downs ruining your ups. By diversifying you can diversify away some risk and by holding for the long term they can become even less risky.
You might also like to view...
Kim, a customer service manager, tracks monthly complaints and has been trying over the past six months to reduce complaints to less than 0.2 percent through additional training for her staff. She is engaged in
A. organizing. B. controlling. C. measuring. D. leading. E. planning.
The ability to refinance short-term obligations on a long-term basis can be demonstrated if the company has already refinanced those obligations after the date of the balance sheet but before it is issued
Indicate whether the statement is true or false
A line of communication created by the audience to connect with others inside or outside the room is called what?
A) Backchannel B) Internet C) Texting D) Live blogging E) Podcasts
The background for the QuickRelief allergy medication ad appearing in the magazine Better Homes and Gardens shows green grass and lovely flowers. The headline states "QuickRelief is 54% more effective than the leading prescription"
At the bottom of the ad, in small print, is an explanation of how the effectiveness of QuickRelief was determined. The ad also shows a package of QuickRelief so consumers can easily recognize it at the store. Identify the different components of the communication model for this advertisement.