Briefly explain the advantages of bonds compared to stocks from an investor's perspective.

What is the benefit of adding bonds to an all$-$stock portfolio and is there a limit to the added benefit?

What is the key difference between covariance and correlation?

Calculate the rate of return for a portfolio purchased at $$82,954,$ and the expected payoff is $$100,000.$ Assume no dividends were paid.

Include the following asset types in order from least $(1)$ to most risky $(5).$

Common Stocks

Financial Derivatives

Treasury Bills

Corporate Bonds

Preferred Stocks

$3$