Better Business, 5/e

Objective 16-1 Investment Fundamentals

1. Describe how risk-return relationships, risk tolerance, and asset diversification and allocation relate to the fundamentals of investments.

Source: Karen Roach/Fotolia

Lecretia Washington works hard for her money, and every penny she earns has a specific purpose: rent, gas, clothing, food, and entertainment. She is trying to set aside money on a regular basis, but it is difficult. Any extra funds are often set aside to meet short-term goals, such as buying a new car or taking a vacation. Her ...