Why would someone invest in a higher risk stock instead of a low-risk bond?

Question

campbell_st · Answer

higher the risk, the higher the return... so more $'s in your pocket...

anonymous · Answer

is there any other reason why @campbell_st

anonymous · Answer

could there be another reason why @triciaal

triciaal · Answer

with stocks you can lose your initial investment but with a bond you cannot lose your initial investment

triciaal · Answer

a bond is really a loan to a company for a specific time with a contract to be paid a certain amount of interest

triciaal · Answer

stock prices fluctuate with the market

anonymous · Answer

can you help me on another one @triciaal

campbell_st · Answer

when people invest they want the best return, if you are risk aversive then you will take a conservative approach. 

if you want a high yield on the investment, then a high risk investment strategy is needed. 

Unfortunately, whilst the dividends are significant the chance of failure is also high.. 

so it all depends on a person's utility...

anonymous · Answer

attachment

anonymous · Answer

@triciaal i posted it

anonymous · Answer

@campbell_st can you help me with the next question?

campbell_st · Answer

its a little beyond me