12 terms

Risk Return Ratio

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Large Cap Mutual Fund
Low Risk, Lower average return
Mid Cap Mutual Fund
Low Risk, Average Return
Small Cap Mutual Fund
Higher Risk, Higher Return
Risk Return Ratio
The higher the risk, the more possibility it is to get a high return. But the flip side is the higher the risk the more possibility to lose everything.
Stock
High risk, depending on the stock/company could be low or high return
Bond
Low risk, low return
Viaticals
High risk, mostly because of fraud
Real estate
Medium risk, return depends on the economy and location
Certificate of Deposit
Low risk, low return
Future/Commodity
High risk, high return - riskiest of all investments because you are betting against the weather
Annuity
Low risk, can be high return - low risk because your investment is protected by the insurance company
Money Market Account
Low risk, low return - this account is for short term savings not long term
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