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nvestment risk: explain key risks associated with investing in stocks. investment return: discuss events that can cause the price of a stock to increase or decrease. risk-return relationship: explain the relationship between risk and return and how this relationship affects stock-investment decisions. use examples to support your claims. reflection: describe how you would make stock-investment decisions in your personal life. also talk about how your decision-making process might change if you needed to make stock-investment decisions for a business.

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There are several key risks associated with investing in stocks.

  • Market risk
  • Specific risk

There are several events that can cause the price of a stock to increase or decrease.

For example, if

  • a company releases strong financial results or announces a new product or partnership, investors may perceive the company to be more valuable and buy its stock, causing the price to increase.
  • a company experiences losses or negative news, such as a product recall or a lawsuit, investors may perceive the company to be less valuable and sell its stock, causing the price to decrease.

Stocks with higher potential returns also carry higher levels of risk. For example,

  • a stock with a high potential for growth may be more volatile and subject to larger price swings, which can be a higher risk for investors.
  • a stock with a lower potential for growth may be less risky but also offer lower potential returns.

Learn more about the Stock market here:

https://brainly.com/question/19340027

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