Identify the Risk and the Return in Each of the Following

question 11

Essay

Identify the risk and the return in each of the following examples.
a. Investing $500 in a certificate of deposit at 4.5% interest.
b. Placing a $100 bet on an NBA game.
c. Investing $10,000 in Microsoft stock.
d. Borrowing $20,000 in student loans.

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Definitions:

Decision Makers

Individuals or entities responsible for making choices that determine the course of actions.

Accountability

The obligation to explain, justify, and take responsibility for one’s actions in a professional or personal context, often within the structure of an organization or public service.

Qualifications

The credentials, education, skills, and experience that make an individual suitable for a specific job or task.

Stereotype

An extensively accepted yet uncomplicated and unchanging notion or representation of a specific sort of individual or thing.