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 xxxx Investment xxxx nbsp 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 amp xxxx Factors xxxx as xxxxxxxx conditions xxxxxxxxx instability xx global xxxxxx can xxxxxxxxxxxxx affect xxxxx prices xxxxxxx risk xx consider xx company-specific xxxx This xxxx is xxxxxxxxxx with xxx individual xxxxxxxxxxxxxxx and xxxxxxxxxxx of x particular xxxxxxx Factors xxxx as xxxxxxxxxx decisions xxxxxxxxxxx pressures xxxxxxxx trends xx changes xx consumer xxxxxxxxxxx can xxxx a xxxxxx impact xx the xxxxx price xx a xxxxxxxx company xxxxxxxxxx Return xxxx 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 nbsp xxx relationship xxxxxxx risk xxx return xx a xxxxxxxxxxx principle xx finance xxxxxxxxx higher xxxxxx of xxxx are xxxxxxxxxx with xxx potential xxx higher xxxxxxx while xxxxxxxxxx investments xxxx to xxxxx lower xxxxxxxxx returns xxxxxxx et xx This xxxxxxxxx holds xx the xxxxx market xx well xxxxxx with xxxxxx volatility xxx uncertainty xxxxx greater xxxx but xxxx have xxx potential xxx higher xxxxxxx These xxxxxxxxx stocks xxx often xxxxxxxxxx with xxxxxxx companies xxxxxxxx markets xx industries xxxx significant xxxxxxxxxxxxx advancements xx the xxxxx hand xxxxxx more xxxxxxxxxxx companies xx stable xxxxxxxxxx tend xx have xxxxx risk xxx may xxxxx more xxxxxxxx returns xxxx important xx note xxxx risk xxxxxxxxx varies xxxxx investors xxxx individuals xxx have x higher xxxxxxxx for xxxx and xxxx greater xxxxxxx while xxxxxx may xxxxxx more xxxxxxxxxxxx investments xx protect xxxxx capital xxxx 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 amp xx For xxxxxxxx investment xxxxxxxxx additional xxxxxxx come xxxx play xxxxxxxxxx often xxxx specific xxxxxxxxx objectives xxxx as xxxxxxxxxx profits xx supporting xxxxxx Therefore xxxxxxxxxx decisions xxxx to xxxxx with xxx company's xxxxxxx strategy x thorough xxxxxxxx of xxxxxxxxx data xxxxxx research xxxxxxxxxxx landscape xxx consideration xx the xxxxxxxxxx prospects xxx essential xx making xxxxx investment xxxxxxxxx that xxxxxxx the xxxxxxxxxxxxxx goals xx conclusion xx can xx said xxxx investing xx stocks xxxxxxxx understanding xxx managing xxxx while xxxxxxxxxxx the xxxxxxxxx return xxxxxx risk xxx company-specific xxxx are xxx factors xx be xxxxx of xxxx investing xx stocks xxxx ReferencesFenghua x E x Zhifang x E xxxxxxx D x I xxx Xiaoguang x A x G xxxxxxxxxxxxxxx OF xxxxxxxxxxxxxx PREFERENCE xxx STOCK xxxxxxx nbsp xxxxxxxx Computation xxx Economic xxxxxxxxxxx Studies xxx Research xxxx Sivarajan x amp xx Bruijn x Risk xxxxxxxxx return xxxxxxxxxxxx and xxxxx factors xxxxxxxxx investment xxxxxxxxx nbsp xxx Journal xx Wealth xxxxxxxxxx nbsp x Yao x amp xxxx A x Do xxxxxx returns xxxxxxxxx risk xxxxxxxxx Evidence xxxx panel xxxx nbsp xxxxxxx of xxxxxx and xxxxxxxx issues xxxx -More Articles From Business Law
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