Define the risk of an investment. What types of firms are particularly risky?
Answer to relevant QuestionsWhy do investors measure risk? Describe the two common measures of risk. Describe common investment mistakes made by individuals. Joel purchased 100 shares of stock for $ 20 per share. During the year, he received dividend checks amounting to $ 150. Joel recently sold the stock for $ 32 per share. What was Joel’s return on the stock? Emma bought a stock a year ago for $ 53 per share. She received no dividends on the stock and sold the stock today for $ 38 per share. What is Emma’s return on the stock? What are stock exchanges? How do they facilitate the trading of stocks?
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