Week 3 Risk 3 - during times of increased inflation. Stocks...

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Some examples of the different types of business investments are cash investments, real estate, commodities, derivatives, mutual funds, debt securities, and stocks. I found a very interesting article that gave some insight into the risk associated with each one of these options that businesses may take advantage of. Derivatives – may be used to reduce the risk involved in changes in the value of the core assets. Cash Investments – usually accompanied by a smaller rate of interest and can be very risky
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Unformatted text preview: during times of increased inflation. Stocks and bonds Stocks are riskier than bonds. Although bonds may not be as risky, their returns may also be lower than other options for investment. Mutual Funds a mixture of stocks and bonds in which a professional manages the securities on your behalf. The risks will vary depending on the specific mixture of stocks and bonds. Commodities- generally associated with higher risk and rates of return. Source: http://www.economywatch.com/investment/...
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This note was uploaded on 03/26/2012 for the course F1515 F1515 taught by Professor Stan during the Spring '10 term at Keller Graduate School of Management.

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