Question 3 Define the various asset classes in the diagram. Be as thorough as possible in explaining the features of each security. Explain in detail the properties and risks involved in owning stock vs fixed income securities, what you can expect in terms of returns on investment...tc. Give examples of derivative securities and what they represent, how and when they might be used. The detail in your answer should demonstrate your understanding of the characteristics of security and how it differs from the other. Rank them in terms of riskiness and give an example of the asset composition that might be suitable for a young person just starting in the workf GE each orce vs an elderly person preparing for retirement. 1.2 Financial Assets Common Stock Ownership stake in entity residual cash flow Asset Classes Fixed Income Securities Derivative Securities Contract, value derived from underlying market condition Money market instruments Bonds, Preferred stock