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No, not all investments carry the same amount of risk. Different types of investments, such as stocks, bonds, real estate, and commodities, have varying levels of risk based on factors like market volatility, economic conditions, and the specific characteristics of the asset. Generally, stocks tend to be riskier than bonds, while investments in emerging markets may carry more risk than those in developed markets. It's essential for investors to assess their risk tolerance and diversify their portfolios accordingly.
What else can I help you with?
What makes insurance company re insure?
All insurance companies have re-insurers, to protect their assets and investments. Insurance means spreading the risk to an insurance company, so insurance companies do the same thing - spread their risk to the reinsurers.
What are the theories in finance?
There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.
What are the options for buying and selling investments on the same day?
The options for buying and selling investments on the same day are known as day trading. This involves quickly buying and selling stocks, options, or other financial instruments within the same trading day to take advantage of short-term price movements. Day trading requires a good understanding of the market and carries a high level of risk due to the fast-paced nature of trading.
What services do Fidelity Investments offer?
Fidelity Investments offers investment assistance, specifically for those with more complex portfolios. They also offer the same services as a regular bank.
How do you calculate risk - free return?
Risk free rate of return or risk free return is calculated as the return on government securities of the same maturity.
Do you know of any retirement saving plans where you can get a high amount of return?
There is no guarantee of returns on a retirement account. The funds are diversified over a variety of investments to assure growth. The higher risk investments stand to gain the most and at the same time, stand to lose the most. There is no one investment guaranteed to bring a specific, "high amount of return." If there were, everyone would be vested in it.
What makes insurance company re insure?
All insurance companies have re-insurers, to protect their assets and investments. Insurance means spreading the risk to an insurance company, so insurance companies do the same thing - spread their risk to the reinsurers.
True or false the correct discount rate for a frim to use in capital budgetingassuming that new investments are of the same degree of risk as the frim's existing assets is its marginal cost of capital?
True
What are the theories in finance?
There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.
What are the theories in?
There are a lot, but Harry Markowitz's theory of diversification is one of the most important, and won him the nobel prize. It's based on the idea that if I invest in one company, I assume a certain amount of risk for a certain amount of reward. But, if I invest in that same company and 1 other random company with a similar risk/reward ratio- then my risk is reduced while my reward is the same. Think about it. If I invest in a software comapny and a gas company, there is 50/50 chance that each one does well. So if one does bad, then I still have a 25% chance of the other one making that reward up. And I can continue to invest into different companies reducing my risk while keeping my reward the same. Investing in about 30 companies is statistically the best you can do, as far as risk vs. reward. After about 30 companies, the benefits are so minimal that most economist agree it is not worth it. So by diversifiying my investments, I am keeping the same level of reward (which is income) while reducing my risk. When I reduce my risk, I can increase my investment, generating greater rewards.
What are the options for buying and selling investments on the same day?
The options for buying and selling investments on the same day are known as day trading. This involves quickly buying and selling stocks, options, or other financial instruments within the same trading day to take advantage of short-term price movements. Day trading requires a good understanding of the market and carries a high level of risk due to the fast-paced nature of trading.
Can the Samsung galaxy s5 get the same apps as iPhone?
The Google Play Store and the Amazon Appstore carry about the same amount and kind of apps as Apple's App Store.
Do the waves of the electromagnetic spectrum carry the same amount of energy?
No. The energy depends on the frequency of the wave Energy= hf=hc/r.
Would all financial managers view risk-return trade-offs similarly?
No, all financial managers don't view risks, returns and trade-offs the same. The type of organization the manger works for effects how they view all three. Corporations that aren't afraid of risk take on investments with higher returns.
What are the best returns for certificates of deposits?
This is subjective. The best rate of return would be an interest rate higher or equal to an interest rate one would get for the same amount of time with the same risk.
All computer with the same ghz will process the same amount of date in a given amount of time?
All computers that have the same GHZ will have the same amount of date. This is in the same amount of time.
What are the difference between political risk and country risk?
they are the same
