PF3: Risk/return, simple/compound interest, APR - Jeffrey See | Laabri

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How are risk and return related to each other?

There is no predictable relationship between risk and return

The lower the risk the higher the potential return

All investments have the same degree of risk

The higher the risk the higher the potential return

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Savings account

Checking account

Certificate of deposit

Stocks

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the interest would be tax free

the interest rate would increase over time

the interest rate would decrease over time

it would pay interest on interest

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additionl fees the lender might charge you

the annual percentage rate (APR)

how much is being borrowed

the length of the loan