You talk to your client, Alice, about starting to invest her money. You want her to have a diversified portfolio. You explain to her that any good portfolio is a combination of various investment vehicles. You need to explain the following types of investments to her:
- Stocks
- Corporate bonds
- Certificates of deposit
When explaining the investment options, make sure to include the following:
- Describe the characteristics of each investment.
- Describe the risks associated with each investment.
- Using current market data, talk about the average expected rate of return for each investment.