Assessing/Evaluating Risk

In the development of an effective and diversified portfolio strategy, the investor must conduct research and understand the risk associated with each investment type. In your reading and research for Module 01 you have studied two main investment types; stocks and bonds.

In a written report, first evaluate the key characteristics of common stock and bonds. Second assess the risks associated with each category of investing. In your narrative, answer the following questions: Are there similarities in the two securities types? What are the key differences? (Do not focus on any specific investment; rather the category of investment).