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Published byAshley Hunt Modified over 9 years ago
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Investing 101 Risk vs. Return Double Time
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Profit earned on an investmentProfit earned on an investment
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Period of time for an investmentPeriod of time for an investment
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The amount that is agreed to be paid in return for the use of a certain amount of moneyThe amount that is agreed to be paid in return for the use of a certain amount of money
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Amount of money you invest to make moneyAmount of money you invest to make money
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People coming together to buy and sell investmentsPeople coming together to buy and sell investments
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Chance that you will commit your money and not get it back- when you need itChance that you will commit your money and not get it back- when you need it
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Chance that the money you have saved or invested will not keep up with the cost of livingChance that the money you have saved or invested will not keep up with the cost of living
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Chance that your investment will lose value because of a decline in the marketChance that your investment will lose value because of a decline in the market
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Best way to reduce risk
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Lower risk investments = this type of returnLower risk investments = this type of return
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Return
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Term
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Interest
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Principal
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Market
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Liquidity Risk
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Inflation Risk
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Market Risk
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Diversification
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Potential for lower returnPotential for lower return
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