6-2 Journal: Risk And Return In Investingfin-320 Principles

6-2 Journal: Risk and Return in InvestingFIN-320 Principles of Finance Southern New Hampshire University 03:38:27 GMT -05:00When investing in stock you have potential investment risks that are key to understanding as well as import investment return. Investment risk is the risk of or probability of experiencing loss instead of return. Some factors that influence investment risk can be market risk which can occur due to changes in the market these events can be inflation or high interest rates slowing the market, equity risk involves the changes of stock prices, and exchange rates risk deflation of the value of the dollar. These are some of the risks that may influence loss on return in aninvestment.Investment return is the amount made from an investment and can be the amount lost from the investment over a period of time. The main influences that cause stock prices to fluctuate are the supply and demand effect. This is when there is high demand, then the stock prices are at a high rate when the supply is large the prices are lower. Stock prices determine the amount of return on the investment.Risk-return relationship simply put is the idea that the greater the risk