16.04.2015 - Are Low-Risk High-Yield Investments Real?
The low-risk, high-yield investment—it’s the Holy Grail of finance, or perhaps more aptly, the perpetual motion machine. One that rewards its holder out of proportion to the danger of holding it. But is there indeed such a thing as a vehicle that can combine the returns of a Lotto ticket with the safety of a Series I savings bond? As a rule, the correlation between risk and reward in the market is almost perfectly positive. Common sense or a few seconds’ rumination should show you why that’s the case, but here’s an explanation anyway. The more people desire an investment because of its expected returns, the greater the demand, and thus the higher its price goes...............................................Full Article: Source
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