Identify the risk and return in each of the following activities:
1. Investing $5,000 in Procter & Gamble (PG) stock.
Risk:
Could you lose the entire $5,000?
Return:
About how much did you earn if you purchased $5,000 of stock on May 1, 2015 and sold it on May 5, 2016? I like to use Yahoo Finance to find historical stock prices.
About how much did you earn in dividends during the time period of May 1, 2015 and May 5, 2016?
What is the percentage return? (Add the gain from the sale of the stock to the dividends and divide that by the original investment of $5,000.)