Problem
1. For whom are stocks riskier than bonds? For whom are bonds riskier than stocks?
2. If the price of a company's stock constitutes a random walk, next year its price will equal today's price plus what?
3. Company A sells heaters and Company B sells air conditioners. Which is the safer investment, Company A stock, Company B stock, or a portfolio containing half of each?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.