Asset Class and Risk
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