ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which is more risky
A
savings account
B
checking account
C
Stock market
D
Retirement fund
Explanation: 

Detailed explanation-1: -The Bottom Line. Equities and real estate generally subject investors to more risks than do bonds and money markets. They also provide the chance for better returns, requiring investors to perform a cost-benefit analysis to determine where their money is best held.

Detailed explanation-2: -Dividend-paying stocks Dividend stocks are considered safer than high-growth stocks, because they pay cash dividends, helping to limit their volatility but not eliminating it. So dividend stocks will fluctuate with the market but may not fall as far when the market is depressed.

Detailed explanation-3: -The Procter & Gamble Company (NYSE:PG) Beta Value: 0.43. PepsiCo, Inc. (NASDAQ:PEP) Eli Lilly and Company (NYSE:LLY) Beta Value: 0.38. Pfizer Inc. (NYSE:PFE) AbbVie Inc. (NYSE:ABBV) Merck & Co., Inc. (NYSE:MRK) Johnson & Johnson (NYSE:JNJ) Beta Value: 0.57. 05-Feb-2023

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