our friend told you that she invested $1,000 in a portfolio of a large company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have recieved $2,500 even id she reinvested the 10percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than bonds? Further explai why the price of many stocks still go down, even when the oversll market goes up. How can you avoid the value of your stock from going down?

our friend told you that she invested $1,000 in a portfolio of a large company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have recieved $2,500 even id she reinvested the 10percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than bonds? Further explai why the price of many stocks still go down, even when the oversll market goes up. How can you avoid the value of your stock from going down?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 3P

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Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Her investment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500 even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest in bonds rather than stocks? Further explain why the price of many individual stocks still go down, even when the overall stock market goes up. How can you avoid the value of your stock from going down?Word Limit 200 words. Do not reproduce the question as part of your answer.
Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, critically discuss why anyone would want to invest inbonds rather than stocks?
Your friend told you that she invested $1,000 in a portfolio of large-company stocks 5 years ago and also reinvested the dividends. Herinvestment grew to $3,456 as at today. Had she invested that same amount in a Government of Grenada bond she would have received $2,500even if she reinvested the 10 percent coupons paid on the bonds. Given this information, ]why anyone would want to invest inbonds rather than stocks?
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