stocks vs bonds
A) stocks are buying a part of the company and a bond is lending to a company
B) stocks tend to have a way better reward but its way more risky sometimes stocks could be a gamble. on the other hand bonds have a much lower reward but it has a low risk
A) the connection between the risk and return is that stocks have a higher reward but higher risk and bonds have lower reward and lower reward
B) the ways to mitigate risk from the stock market are one take advantage of market flows like buying the stock when its at its lowest or when it crashes, two choosing the easiest stocks to invest in. three is to review your process.
A) a well balance portfolio means having both stocks and bonds usually people have a 50/50 portfolio or a 60% stocks and 40% bonds
B) Rebalancing is changing an asset allocation in a portfolio to bring it back in line with the initial allocation determined by an investor’s risk and reward profile. rebalancing is good because it ensures that you have a mixed investments and enables you to sustain your selected degree of risk over time.
Core Competency Self Assessment
- all the info I used was from a OneNote and I didn’t use any other sites but i watched a YouTube video
- investing has become more approachable concept for me because I love money
- the one thing I learned was about bonds at first I didn’t know what bonds were then i found out that its pretty good for a side thing