Risk vs Return Risk vs Reward

Risk vs Return Risk vs Reward

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Term Definition
asset class Separate types of investments, such as stocks/stock mutual funds, bonds/bond funds, money market accounts, and international stocks/international stock funds.
dividend Money paid by a corporation to each shareholder.
money market A mutual fund or account that invests in short-term, liquid investments.
mutual fund A pool of stocks, bonds, and other securities managed by an investment company.
rate of return The annual amount of money an investment makes, given as a percentage.
risk The chance that an investment may lose value.
return Monetary increase in an investment.

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