[Answered] Module 6 Journal

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Instructions

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 assignment 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:

Investment Risk: Explain key risks associated with investing in stocks.

Investment Return: Discuss events that can cause the price of a stock to increase or decrease.

Risk-Return Relationship: Explain the relationship between risk and return and how this relationship impacts stock investment decisions, using examples to support your claims.

Reflection: Describe whether you make stock-investment decisions in your personal life and how you do or would make those decisions.

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?

Guidelines for Submission

Your submission must be a 4- to 5-paragraph Word document with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.

 

 

 

 

Solution

The stock marketplace has a massive deal to offer to customers. Several individuals, conversely, avoid investing in stocks because of the different dangers involved. The collapse of an odd market or recession does not enhance the issue. Hence, potential trust among investors has been destroyed, and as an outcome, they have decided to move away from various markets. Other risks include the intrinsic in investments and are above management of stakeholders. These dangers significantly influence the economy or market. Therefore, shareholders must either transform their collections or wait out the gale…………..Purchase the link to access the full answer @$6