In class this week, we talked about the difference between stock market and the bond market.

Remember: Stocks give you partial ownership in a corporation, while bonds are a loan from you to a company or government. The biggest difference between them is how they generate profit: stocks must appreciate in value and be sold later on the stock market, while most bonds pay fixed interest over time.

a) Which one usually has more risk in it?

b) Which one typically pays you a higher interest when you invest in it? Explain your answer.

c) Optional: is there any stock right now but you would consider investing in or do you think it's too risky?