Explain key risks associated with investing in stocks

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Reference no: EM133583581

Assignment: Journal- Risk & Return in Investing

Overview

Risk and return go together. You must understand this relationship to make informed financial decisions. This applies when you make personal investment decisions or when you're investing excess cash for a business. In this journal assignment, you will explore the risk-return relationship when investing in stocks in both of these roles.

Directions

Write a journal discussing risk and return as it relates to investing in stocks.

Specifically, you must address the following criteria:

A. Investment Risk: Explain key risks associated with investing in stocks.

B. Investment Return: Discuss events that can cause the price of a stock to increase or decrease.

C. Risk-Return Relationship: Explain the relationship between risk and return and how this relationship affects stock-investment decisions. Use examples to support your claims.

D. Reflection: Describe how you would make stock-investment decisions in your personal life. Also talk about how your decision-making process might change if you needed to make stock-investment decisions for a business.

Reference no: EM133583581

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