Inverstment

My Point View on Investment Diversification

周雨奇

FB1204

201235125

摘要：我打算在这篇论文中阐述一下我对投资的观点和看法。主要内容是投资的风险与回报、投资的方式和特点、投资的多元化以及自己对于如何在中国实践投资的感想。

关键词：风险和回报；投资和投资方式；投资相关特征；投资多元化；证券或者投资组合.

Abstract: I intend to elaborate on my views and opinions of the investment in this thesis. The main content is the investment risk and return, the ways of investment and investment diversification characteristics, and how the practice of investment in China.

Keywords: risk and return; investment mode; investment related characteristics; the diversification of investment.

1. Risk and Return

1.1 Definition of risk and return:

Generally, the risk refers to objective circumstances, in particular during the period of an event. The extent of changes between expected results and actual results. In the fact, many risks can be avoided by some ways. The most common risk is losing money.

    Return means getting the values which through investment. Investors provide their money to some company, when the company gets some profit, investors will get more money, and this is the return.

1.2. Relationship between risk and return:

Everyone think that the high return investment will make the high risk. The stock is this way. If someone tells you that he has a low risk and a high return investment, don’t believe him. Someone avoid little risk by their analysis, but no one can get zero risk expect you don’t invest anything.

High return can bring us high risk, but high risk mustn’t make high return. The equity of the social is not absolute. It leads to the Poverty gap. So investment is also not the equity things. Every investor is all should know the relationship with the risk and return.

1.3 My opinions about risk and return.

My father told me a story when I have graduated from high school. A child wanted to catch some birds to play, so he brought a stick, a pot and little rice to the forest. The stick with a rope supports the pot and the child put some rice under the pot, the child had hide when he finished these. After a while, there were nine birds in the forest. Six birds went to the trap, but the child wanted to catch other birds, so he didn’t do anything. At the end, the child got nothing because nine birds left the forest.