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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.
Total Liabilities
The sum of all financial obligations a company owes to outside parties.
Expenses
Costs incurred by a business in the process of earning revenue, including operational costs, salaries, and utilities.
Retained Earnings
Part of a company's profit that is held or retained and saved for future use, reinvestment, or to pay debt rather than being paid out as dividends to shareholders.
Common Stock
A type of security that represents ownership in a corporation, entitling the holder to vote on corporate matters and receive dividends.
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