From the viewpoint of the individual investor, are stocks or bonds riskier? Explain
Stocks are riskier in the sense that there is no guaranteed return. Individuals buy stock if they believe returns will be sufficiently high to justify the risk. Bonds give a known payment, plus return of principal (unless the company goes bankrupt). The risk to the bondholder is that inflation may eat away at the principal, and rising interest rates may adversely affect the bond's value in secondary markets.
Economics
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Refer to above Table 2-2. What is the increase in real GDP between years 1 and 2 at fixed year 1 prices?
A) 4.3% B) 3.3% C) 2.5% D) 1.9%
Economics
Why would you expect the demand for diamond jewelry to fall faster than plastic, costume jewelry when all incomes fall?
What will be an ideal response?
Economics