Discuss the risk and reward trade-off as it relates to the security market line for various investment vehicles.

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August 22, 2019
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August 22, 2019

Discuss the risk and reward trade-off as it relates to the security market line for various investment vehicles.

Question Description

Deliverable Length: 400–600 words

Discuss the risk and reward trade-off as it relates to the security market line for various investment vehicles.

Focus your discussion on the following:

  • Describe the risks associated with the investment vehicles.
  • Briefly discuss beta and duration.
  • What risks are inherent in the current interest rate environment?

Be sure to include the following:

  • U.S. government securities
  • Large-cap common stocks
  • International investments
  • Investment-grade bonds
  • High-yield (junk) bonds