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    Bonds in a financial portfolio

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    Bonds and stocks are very similar securities in many respects. For example, market value of both are determined by their expected future cash flows; and both show price sensitivity - some more, some less - to a set of common market factors. At the same time, some may even go further and state that when it comes to portfolio investing details, there is really no difference between the two either.

    What do you think? Do you think that investing in financial assets is just investing and it does not matter whether we are talking about bond portfolios or stock portfolios? What advice would you give to your clients?

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    The response addresses the queries posted in 491 words with references.

    //As per directions, in this paper, we will reflect the views relating to whether there is really no difference between Bonds and Stocks at the time when it pertains to portfolio investing details. On the whole, this part enhances your knowledge in concern of Bonds and Stocks.//

    As regards the given statement, it is not actually true that there is no difference between Bonds and Stocks. In point of fact, both have common points, but there is great difference between two. Like both are individually and altogether traded in the independent markets (Kristof, 2008). Besides that, it is also reflected that at the time of portfolio investing details, Bonds & Stocks are not ...

    Solution Summary

    The response addresses the queries posted in 491 words with references.