Not exact matches
Stocks have historically earned higher returns
than other asset classes, but they carry higher levels of
risk.
But just keep in mind that the stock market has a lot of ups and downs, and the
risk of loss is much higher with stocks
than with
other asset classes such as bonds or cash.
That is why your textbook feels the need to add the qualifier «for practical purposes,» meaning that the
risk of a money market account is so much lower
than virtually any
other asset class that it can reasonably be approximated as
risk free.
Keep in mind that stocks do involve greater
risk of short - term fluctuations
than other asset classes.
Among various types of income ETPs listed in the U.S., high - dividend equity ETPs recorded the highest five - year absolute and
risk - adjusted return as of Aug. 31, 2017, although they had lower yield
than a few
other income
asset classes.
The fund's portfolio may underperform the general equity markets, or
other asset classes, with the potential for greater individual security
risk,
asset class risk, and higher industry concentration
risk than more broadly diversified portfolios.
Certain
asset classes are riskier
than others; for example, bonds tend to have lower
risk and lower returns, whereas stocks exhibit high
risk and returns.
In Woodsford's view, the
risks involved in litigation funding are not easily managed by anyone
other than professional funders, staffed by experienced litigation and arbitration experts, who «live and breathe» the
asset class.