Which among the six types of investment has the higher risk of loss? Explain your answer.NOTE: the six types of investment is in the photo attached. Thank you. Types of InvestmentsWe make various investments to stay well prepared for the time of crisis thatmay arise in the future. Hence, planning is an important aspect while you think ofany investments, Specifically, in financial investments, there are various options toexplore.BONDSEQUITY STOCKSMUTUAL FUNDSBasically,theA mutual fund isBond is basically debtsecurity. Purchasingbond or a debt instrumentstockanrepresents your share inownershipcompany. Stock price orshare price represents theainvestment vehicle thattheofpools the money ofmeans as an investor youare lending money togovernmentscorporates isuing thesebonds.several similar investorswho aim to make moneyout of their investment.Pooledfundby the mutualormarket determination ofthat company's value.By investing in equitystocks, you buy ownershipin that company whichallows you to participatein a company's growth.fund trust is invested ingovernment andcorporatesthevarious asset classes likeraisethestocks and bonds and thecapitalby issuing bonds. Inwhich, the issuer of themoney earned on suchinvestmentsarebond is obligated to payyou interest on the loan.distributedamonginvestors.REAL ESTATEGOLD/SILVERBUSINESSReal estate investmentPrecious metals are theA business is consideredfavoritean investment becauserefers to investing in redassets like properties. Thsmeans purchasing land orbuilding or any kind ofproperty and then rentingit or selling it for profit.investmentare putting yourmoney to something thatwill give returns in thefuture.vehicle formany Indians. Italsoyouisconsideredauspicious to buy theseprecious metals. Gold andThis type of investmentrequires time and effortfrom the investor or thesilveraretradedaScommodities.investment into gold isdone as a hedge againstinflation.For long-term, gold/silverReal estate investmentsBasically,are lucrative investmentoptions for many. It isconsidered as a goodlong-termowner. He/she will have tolearndifferentskilsinvestmentneededin order to gain.choice.canbeagoodinvestment option.A Yuchengco-AyalaPartnershipYour Ambitton and Passi n, our Mission

The chance or potential of experiencing losses in relation to the projected return on any given…

We make variouUs investments to stay well prepared for the time of crisis that may arise in the future. Hence, planning is an important aspect while you think of any investments. Specifically, in financial investments, there are various options to explore. BONDS EQUITY STOCKS MUTUAL FUND Basically, represents your share in the stock A mutual fund is -Bond is basically debt security. Purchasing a bond or a debtinstrument the investment vehicle ownership of a pools the money

We make variouUs investments to stay well prepared for the time of crisis that may arise in the future. Hence, planning is an important aspect while you think of any investments. Specifically, in financial investments, there are various options to explore. BONDS EQUITY STOCKS MUTUAL FUND Basically, represents your share in the stock A mutual fund is -Bond is basically debt security. Purchasing a bond or a debtinstrument the investment vehicle ownership of a pools the money

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)

7th Edition

ISBN:9780357033609

Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk

Chapter13: Investing In Mutual Funds, Etfs, And Real Estate

Section: Chapter Questions

Problem 5FPE

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A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor’s expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 8.00% 28.00% Babish & Co. 30% 14.00% 32.00% Cornell Industries 35% 12.00% 35.00% Danforth Motors 15% 3.00% 37.00% What is the expected return on Andre’s stock portfolio?…
A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor’s expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 29.00% Babish & Co. 30% 14.00% 33.00% Cornell Industries 35% 11.00% 36.00% Danforth Motors 15% 3.00% 38.00% What is the expected return on Andre’s stock portfolio?…
A collection of financial assets and securities is referred to as a portfolio. Most individuals and institutions invest in a portfolio, making portfolio risk analysis an integral part of the field of finance. Just like stand-alone assets and securities, portfolios are also exposed to risk. Portfolio risk refers to the possibility that an investment portfolio will not generate the investor’s expected rate of return. Analyzing portfolio risk and return involves the understanding of expected returns from a portfolio. Consider the following case: Andre is an amateur investor who holds a small portfolio consisting of only four stocks. The stock holdings in his portfolio are shown in the following table: Stock Percentage of Portfolio Expected Return Standard Deviation Artemis Inc. 20% 6.00% 30.00% Babish & Co. 30% 14.00% 34.00% Cornell Industries 35% 13.00% 37.00% Danforth Motors 15% 5.00% 39.00% What is the expected return on Andre’s stock portfolio?…