Homework: Risk & Return
Overview
Risk and return go hand in hand. Understanding this relationship is critical to making well-reasoned financial decisions, whether you are making personal investment decisions or working for a business where you're responsible for investing excess cash. This journal homework allows you to explore the risk-return relationship in the context of investing in stocks in both of these roles.
Prompt
Write a journal discussing risk and return as it relates to investing in stocks.
Specifically, you must address the following rubric 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 impacts stock investment decisions, using examples to support your claims.
D. Reflection: Describe whether you make stock-investment decisions in your personal life and how you do or would make those decisions.
E. Consider the following in your response: Would your decision-making process change if you needed to make stock-investment decisions for a business? Why or why not?
Format your homework according to the give formatting requirements:
• The answer must be using Times New Roman font (size 12), double spaced, typed, with one-inch margins on all sides.
• The response also includes a cover page containing the student's name, the title of the homework, the course title, and the date. The cover page is not included in the required page length.
• Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.