ld I manage my portfolio's risk in the current financial environment (Ex: COVID-19, inflation, global and political uncertainty). Should my money stay in cash or bonds
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How should I manage my portfolio's risk in the current financial environment (Ex: COVID-19, inflation, global and political uncertainty). Should my money stay in cash or bonds? Should I be taking more risk with equities?
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- What are the differences between stocks and bonds in terms of predicted future payments? Which sort of investment is regarded to be riskier (stocks or bonds)? Given your knowledge, which investment (stocks or bonds) do you believe is often referred to as "fixed income"?Which asset below is generally the most suitable benchmark measure of the risk-free return? Treasury bills Small stocks Long-term government bonds Non-investment grade bonds Common stocksHow is risk defined and measured? How might the magnitude of the market risk premium impact someone’s desire to buy stock?
- In a CAPM world, what do you need to know in order to estimate an asset's expected return? Group of answer choices The risk free rate, the market risk premium, and the asset's standard deviation The risk free rate, the market risk premium, and the asset's beta The corporate bond rate, the expected return on the S&P 500 and the asset's Beta Market sentiment, historical stock returns and the risk free rateThe measure of risk is called: Group of answer choices The rate provided by short term government securities Beta The market rate of return The rate provided by long term government securitiesCompare and contrast common stocks (equity securities) and bonds (fixed income securities). And considering your risk appetite, which type of security will you choose to invest, why?
- As an investor now or in the future, what are steps that you would take to mitigate the risk of interest rate risk? Do you believe age and current economic status play a role in how much interest rate risk investors can tolerate?Which of the following portfolios have the least risk? why? A portfolio of long-term Government bonds Standard and Poor's composite index Portfolio of common stocks of small firms A portfolio of treasury billsHow do stocks and bonds differ in terms of the future payments that they are expected to make? Which type of investment (stocks or bonds) is considered to be more risky? Given what you know, which investment (stocks or bonds) do you think commonly goes by the nickname “fixed income”?
- The calculation of an investor's Risk Aversion (A) requires us to look at that individual investor's historic behavior in his/her investing history. Why is Risk Aversion also called "price of risk"? Group of answer choices Risk Aversion measures the risk premium that the investor has required for the Capital Market Line Risk Aversion is determined by the excess return over the risk-free asset, as required by the investor Risk Aversion measures the difference in returns required by the investor in the Capital Allocation Line versus the Capital Market Line Risk Aversion measures the amount of return that the investor has required for each unit of risk taken None of the abovehow do financial analysts determine the portfolio that has the lowest risk and yields a high expected return?What is risk? Although many risks (e.g., career risk, risk of how many children to have and whether they will succeed morally and academically, etc.) in the real world are not tradable, some risks (e.g., stock price risk, credit risk, interest rate risk, currency exchange rate risk, risks that insurance policies cover, etc.) are actively traded in the market. What determine the equilibrium price of tradable risks?
