In this chapter, students will be able to understand: Describe various types of risk to which investors are exposed, as well as the sources of return; know how to search for an acceptable investment on the basis of risk, total return, and yield; discuss the merits of investing in common stock and be able to distinguish among the different types of stocks;. | PFIN 4 Investing in Stocks and Bonds 12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe various types of risk to which investors are exposed, as well as the sources of return Know how to search for an acceptable investment on the basis of risk, total return, and yield Discuss the merits of investing in common stock and be able to distinguish among the different types of stocks LEARNING OUTCOMES PFIN4 | CH12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Become familiar with the various measures of performance and how to use them in placing a value . | PFIN 4 Investing in Stocks and Bonds 12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. GITMAN/ JOEHNK/ BILLINGSLEY Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Describe various types of risk to which investors are exposed, as well as the sources of return Know how to search for an acceptable investment on the basis of risk, total return, and yield Discuss the merits of investing in common stock and be able to distinguish among the different types of stocks LEARNING OUTCOMES PFIN4 | CH12 Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Become familiar with the various measures of performance and how to use them in placing a value on stocks Describe the basic issue characteristics of bonds as well as how these securities are used as investment vehicles Distinguish between the different types of bonds, gain an understanding of how bond prices behave, and know how to compute different measures of yield LEARNING OUTCOMES (continued) PFIN4 | CH12 Risks of Investing Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH12 Risks of Investing Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. PFIN4 | CH12 Returns from Investing Copyright ©2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Current income - Received with some degree of regularity over a year Capital gains - .