Risk and return go together. You must understand this relationship to make informed financial decisions. This applies when you make personal investment decisions or when you’re investing excess cash for a business. In this journal assignment, you will explore the risk-return relationship when investing in stocks in both of these roles.
Write a journal discussing risk and return as it relates to investing in stocks.
Specifically, you must address the following rubric criteria:
Your submission should be a 4- to 5-paragraph Microsoft Word document (not including title and resource pages) with 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited using APA style.
| Criteria | Proficient (100%) | Needs Improvement (70%) | Not Complete (0%) | Value |
|---|---|---|---|---|
| Investment Risk | Explains key risks associated with investing in stocks | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in more detail the key risks associated with investing in stocks | Does not attempt criterion | 21 |
| Investment Return | Discusses events that can cause the price of a stock to increase or decrease | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include discussing in more detail the events that can cause the price of a stock to increase or decrease | Does not attempt criterion | 21 |
| Risk-Return Relationship | Explains the relationship between risk and return and how this relationship affects stock-investment decisions, using examples to support claims | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include explaining in more detail the relationship between risk and return and how this relationship affects stock-investment decisions, using examples to support claims | Does not attempt criterion | 22 |
| Reflection | Describes how personal stock-investment decisions would be made and talks about how the decision-making process would change if the decisions were being made for a business | Shows progress toward proficiency, but with errors or omissions; areas for improvement may include describing in more detail how personal stock-investment decisions would be made and how the decision-making process would change if the decisions were being made for a business | Does not attempt criterion | 21 |
| Articulation of Response | Clearly conveys meaning with correct grammar, sentence structure, and spelling, demonstrating an understanding of audience and purpose | Shows progress toward proficiency, but with errors in grammar, sentence structure, and spelling, negatively impacting readability | Submission has critical errors in grammar, sentence structure, and spelling, preventing understanding of ideas | 10 |
| Citations and Attributions | Uses citations for ideas requiring attribution, with few to no minor errors | Uses citations for ideas requiring attribution, with major errors | Does not use citations for ideas requiring attribution | 5 |
| Total: | 100% | |||