Investment vehicles
Deliverable Length: 400–600 words
Discuss the risk and reward trade-off as it relates to the security market line for various investment vehicles.
Focus your discussion on the following:
- Describe the risks associated with the investment vehicles.
- Briefly discuss beta and duration.
- What risks are inherent in the current interest rate environment?
Be sure to include the following:
- U.S. government securities
- Large-cap common stocks
- International investments
- Investment-grade bonds
- High-yield (junk) bonds
Answer Preview
Investment vehicles are products which are used by investors aiming to attain a given positive return. Investment vehicles can be of either low risk or have a high rate of risk. Low-risk investment vehicles include the bonds and certificate of deposit (CDs) while the high-risk investment vehicles include stocks, futures, and options (Jones, C. P. 2010). There are also other…
(576 Words)