首页
外语
计算机
考研
公务员
职业资格
财经
工程
司法
医学
专升本
自考
实用职业技能
登录
外语
There are two types of risk related to investment. The obvious risk is that the company you invest in will fold and you will los
There are two types of risk related to investment. The obvious risk is that the company you invest in will fold and you will los
admin
2011-01-02
35
问题
There are two types of risk related to investment. The obvious risk is that the company you invest in will fold and you will lose everything. The other type of risk is how much the value of your investment can change. Some investments swing wildly: one month they are worth four times what you put in, the next month they are worth only one quarter of the money you put in. If you have to take your money out at the wrong time, you lose lots. Low-risk investments
Classic low-risk investments are government stocks and bank deposits. The institutions aren’t likely to go out of existence. And the investments are "capital guaranteed", meaning your balance can never drop below the amount you put in.
But even these classic low-risk investments carry the risk that interest rates will rise and you will be stuck with your money tied up at the lower interest rates at which you first invested. And not every fixed-interest investments is with a rock-solid organization. Some providers may offer capital "guaranteed" products where in fact no third party is guaranteeing the continuing financial viability of the provider of the product. The warning is that investors must check that the guarantee and the person or institution offering the guarantee are both good and strong. Any guarantee is only as good as those offering it.
High-risk investments
The classic high-risk investment is in shares in a small company which is perhaps newly listed on the stock exchange. Such a small company could quite easily collapse. On the other hand, the share price might soar.
If an investor wants to up the ante, they borrow money to buy the shares. Through what’s known as leverage or gearing, investors hope to make a huge return not only on their own money, but also on someone else’s. If the company collapses, they not only lose their investment, but must also repay their debt.
Numerous studies have shown that, on average, high-risk investors make more than low-risk ones. Over time, the stock market rewards them for sticking their necks out, and sometimes getting them chopped off. Even during the 1980s, the decade of the stock market crash, one study shows that over the whole of the ten years shares outperformed lower-risk fixed interest and property investments.
This brings us to the first basic rule relating to risk: high risk equals high return. If you want to maximize your savings, take some risk with at least some of your money.
Keep in mind, though, the second rule relating to risk., diversify your investment. This is partly so you won’t be hurt too badly if one company falls over. In short, you’re mad not to spread your money around. All the big financial institutions do, This means dividing it among:
different types of investments--some in shares, some in property, some in bonds and so on;
different investments within each group--shares in lots of different companies, several properties, a variety of fixed--interest investments
different countries--not only China, the US or Japan but in Europe or South-East Asia.
If it’s all starting to sound impossible for one person to manage, it probably is. Fortunately several investment products are designed to diversifying for you. For example, one unit trust can hold a much wider range of local and overseas investments than an individual could dream of.
Take care, though. Putting all you money in just one diversified unit trust still exposes you to the risk that the trust will be badly damaged. Perhaps using two or three trusts or other diversified investments would be the answer.
If you want to have a high return, you will______.
选项
A、avoid any risk investment
B、try low-risk investments only and avoid high-risk ones
C、try high-risk investments only and avoid low-risk ones
D、try both high-risk investments and low-risk ones
答案
D
解析
高风险投资一节谈到两条风险原则:一是高风险高回报,另一个是投资多元化能降低风险。B不正确,因为该节第三段指出,从长远来看低风险的回报率大大低于高风险的回报率。C也不正确,因为该节第五段提到如果投资不多元化就会一损俱损。所以正确答案是D,即两种风险投资都要尝试。
转载请注明原文地址:https://kaotiyun.com/show/EdlO777K
0
专业英语八级
相关试题推荐
TheInternetofthefutureshouldbeaworldwidemarketplacefullyaccessiblebymobilecustomerseverywhere,theleadingnetwor
A、Doingabitofactingandphotography.B、Goingtoconcertsfrequently.C、Playingtraditionaljazzandfolkmusic.D、Travelling
LeavingHomeGenerallyforstudentsorforpeoplejustbeginningwork,therearepractical【1】_____of
CommunicatingThroughInternetThehistoryoftheInternetcanbedatedbacktothe1960’s,whentheDepartmentof【1】______
TheUnitedNationsConferenceonDrugAbusethattookplaceearlierthisyearinVienna,wasaveryproductivemeeting.Asnever
Whichofthefollowingcameintobeingasanon-religiousAmericanfestival?
SevenTypesofEvidenceItisimportanttolearntouseevidenceinargumentativewriting,becausewithoutevidence,youcan’
A、BritishChancelloroftheExchequerB、BritishPrimeMinisterC、GMTVandTheObserverD、USPresidentA
IntheAgeofGenetics,younolongerhavetotrytocutoutsmokingorthinktwiceaboutgobblingthatcandybarinyourdeskd
Ofthefollowingpoets,______isNOTaromanticpoet.
随机试题
A.咀嚼B.蠕动C.排空D.分节运动E.袋状往返运动结肠特有的运动
Hetookmyadviceingoodpart.他采纳了我意见中的较好的那部分。
下列选项中,()不计入房屋建筑面积。
证券交易所会员参与国债买断式回购引人交易权限管理制度。()
根据贷款性质的不同,个人教育贷款可分为()。
关于最佳估计数,下列说法中正确的有()。
根据《中华人民共和国教育法》,我国的学校教育制度包括()
在小组工作的中期转折阶段,小组成员关系走向亲密,小组内权利竞争开始,此时社会工作者的工作重点是()。
Oursocietyhaschangedand______init.
Comparedwiththeimmediatepracticalresponsibilityofthescientist,the(1)oftheartistmustseempuny.Thedecisionwhich
最新回复
(
0
)