anonymous
  • anonymous
Why would someone invest in a higher risk stock instead of a low-risk bond?
Mathematics
  • Stacey Warren - Expert brainly.com
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SOLVED
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jamiebookeater
  • jamiebookeater
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campbell_st
  • campbell_st
higher the risk, the higher the return... so more $'s in your pocket...
anonymous
  • anonymous
is there any other reason why @campbell_st
anonymous
  • anonymous
could there be another reason why @triciaal

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triciaal
  • triciaal
with stocks you can lose your initial investment but with a bond you cannot lose your initial investment
triciaal
  • triciaal
a bond is really a loan to a company for a specific time with a contract to be paid a certain amount of interest
triciaal
  • triciaal
stock prices fluctuate with the market
anonymous
  • anonymous
can you help me on another one @triciaal
campbell_st
  • campbell_st
when people invest they want the best return, if you are risk aversive then you will take a conservative approach. if you want a high yield on the investment, then a high risk investment strategy is needed. Unfortunately, whilst the dividends are significant the chance of failure is also high.. so it all depends on a person's utility...
anonymous
  • anonymous
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anonymous
  • anonymous
@triciaal i posted it
anonymous
  • anonymous
@campbell_st can you help me with the next question?
campbell_st
  • campbell_st
its a little beyond me

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