Question.2166 - Risk and return go together. You must understand this relationship to make informed financial decisions. This applies when you make excess cash for a business. In this journal assignment, you will explore the risk-return relationship when investing in stocks in both of t Directions Write a journal discussing risk and return as it relates to investing in stocks. Specifically, you must address the following rubric criteria: Investment Risk: Explain key risks associated with investing in stocks. Investment Return: Discuss events that can cause the price of a stock to increase or decrease. Risk-Return Relationship: Explain the relationship between risk and return and how this relationship affects stock-investment d Reflection: Describe how you would make stock-investment decisions in your personal life. Also talk about how your decision-m investment decisions for a business.
Answer Below:
Risk xxx Return xx Stock xxxxxxxxxxxxxxxxxx in xxxxxx can xx an xxxxxxxx and xxxxxxxxxxx rewarding xxxxxxxx However xx is xxxxxxx to xxxxxxxxxx the xxxxxxxx of xxxx and xxxxxx to xxxx informed xxxxxxxxxx decisions xxxxxxxxxx Risk xxxxxxxxx in xxxxxx comes xxxx inherent xxxxx that xxx investors xxxxxx be xxxxx of xxx of xxx primary xxxxx is xxxxxx risk xxxxx refers xx the xxxxxxxxxxx of xxxxxxx market xxxxxxxxxxxx impacting xxx value xx stocks xxx Curl xxxxxxx such xx economic xxxxxxxxxx political xxxxxxxxxxx or xxxxxx events xxx significantly xxxxxx stock xxxxxx Another xxxx to xxxxxxxx is xxxxxxxxxxxxxxxx risk xxxx risk xx associated xxxx the xxxxxxxxxx characteristics xxx performance xx a xxxxxxxxxx company xxxxxxx such xx management xxxxxxxxx competitive xxxxxxxxx industry xxxxxx or xxxxxxx in xxxxxxxx preferences xxx have x direct xxxxxx on xxx stock xxxxx of x specific xxxxxxx Investment xxxxxx Stock xxxxxx are xxxxxxxxxx by xxxxxxx events xxx factors xxxx can xxxxx them xx increase xx decrease xxxxxxxx events xxxx as xxxxxx financial xxxxxxxxxxx increased xxxxx new xxxxxxx launches xx favorable xxxxxx conditions xxx drive xxxxx prices xx On xxx other xxxx negative xxxxxx such xx poor xxxxxxxxx results xxxxxxxxxx regulatory xxxxxxx or xxxxxxxx downturns xxx lead xx a xxxxxxx in xxxxx prices xxxxxxxxx also xxx close xxxxxxxxx to xxxxxxxxx which xxx a xxxxxxx of x company's xxxxxxx distributed xx shareholders xxxxxxxx payments xxx contribute xx the xxxxxxx return xx investment xxx companies xxxx a xxxxxxxxxx track xxxxxx of xxxxxxxxxx dividends xxx often xxxxxxxxxx favorable xxxxxxxxxxx Risk-Return xxxxxxxxxxxx The xxxxxxxxxxxx between xxxx and xxxxxx is x fundamental xxxxxxxxx in xxxxxxx Generally xxxxxx levels xx risk xxx associated xxxx the xxxxxxxxx for xxxxxx returns xxxxx lower-risk xxxxxxxxxxx tend xx offer xxxxx potential xxxxxxx Fenghua xx al xxxx principle xxxxx in xxx stock xxxxxx as xxxx Stocks xxxx higher xxxxxxxxxx and xxxxxxxxxxx carry xxxxxxx risk xxx also xxxx the xxxxxxxxx for xxxxxx returns xxxxx high-risk xxxxxx are xxxxx associated xxxx smaller xxxxxxxxx emerging xxxxxxx or xxxxxxxxxx with xxxxxxxxxxx technological xxxxxxxxxxxx On xxx other xxxx larger xxxx established xxxxxxxxx in xxxxxx industries xxxx to xxxx lower xxxx but xxx offer xxxx moderate xxxxxxx It's xxxxxxxxx to xxxx that xxxx tolerance xxxxxx among xxxxxxxxx Some xxxxxxxxxxx may xxxx a xxxxxx appetite xxx risk xxx seek xxxxxxx returns xxxxx others xxx prefer xxxx conservative xxxxxxxxxxx to xxxxxxx their xxxxxxx Personal xxx Business xxxxxxxxxx Decisions xx making xxxxx investment xxxxxxxxx for xxxxxxxx life xxx should xxxxxxxx their xxxxxxxxx goals xxxx horizon xxx risk xxxxxxxxx It's xxxxxxxxx to xxxxxxxxx the xxxxxxxxxx portfolio xxxxxx different xxxxxxx and xxxxx classes xx reduce xxxxxxxx to xxxxxxxxxx stock xxxx Conducting xxxxxxxx research xxxxxxxxx financial xxxxxxxxxx and xxxxxxx informed xxxxx market xxxxxx can xxxx in xxxxxx well-informed xxxxxxxxxx decisions xxxxxxxxx De xxx business xxxxxxxxxx decisions xxxxxxxxxx factors xxxx into xxxx Businesses xxxxx have xxxxxxxx financial xxxxxxxxxx such xx maximizing xxxxxxx or xxxxxxxxxx growth xxxxxxxxx investment xxxxxxxxx need xx align xxxx the xxxxxxxxx overall xxxxxxxx A xxxxxxxx analysis xx financial xxxx market xxxxxxxx competitive xxxxxxxxx and xxxxxxxxxxxxx of xxx industry's xxxxxxxxx are xxxxxxxxx in xxxxxx sound xxxxxxxxxx decisions xxxx support xxx organization's xxxxx In xxxxxxxxxx it xxx be xxxx that xxxxxxxxx in xxxxxx involves xxxxxxxxxxxxx and xxxxxxxx risk xxxxx considering xxx potential xxxxxx Market xxxx and xxxxxxxxxxxxxxxx risk xxx key xxxxxxx to xx aware xx when xxxxxxxxx in xxxxxx ReferencesFenghua x E x Zhifang x E xxxxxxx D x I xxxxxxxxx Y x N x CHARACTERISTICS xx INVESTORS'RISK xxxxxxxxxx FOR xxxxx MARKETS xxxxxxxx Computation xxxxxxxx Cybernetics xxxxxxx Research xxxxxxxxx S xx Bruijn x Risk xxxxxxxxx return xxxxxxxxxxxx and xxxxx factors xxxxxxxxx investment xxxxxxxxx The xxxxxxx of xxxxxx Management x Yao x Curl x L xx market xxxxxxx influence xxxx tolerance xxxxxxxx from xxxxx data xxxxxxx of xxxxxx and xxxxxxxx issues xMore Articles From Business Law
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