RCSC 150B2 Chapter Notes - Chapter 11: Federal Deposit Insurance Corporation, Risk Aversion, Risk Premium
11 Oct 2016
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Savings is not to make you rich, but it is to keep you from being poor. ~ J. b. quinn: savings no or low-risk investments with low returns. Insured savings: fdic federal deposit insurance corporation. Friday, october 7, 2016: ncua national credit union association, united states treasury bills, notes, and bonds, risk premium the difference between the risk-free rate of. Backed by the full faith and credit of the united states government return and the expected yield of an investment with risk. Investing has risk the chance of losing some or all of your investment: to compensate for risk and entice an investor, investments with risk must pay a premium, risk premium compensation for taking on the risk. Zero risk fdic, ncua, u. s. treasury bills, notes, and bonds risk-free rate. Types of risk: default risk or credit risk risk that the company invested in may declare bankruptcy. 2009 chrysler bankruptcy: bondholders received sh. 26 for every dollar they invested.
