Investors are not rewarded for taking on unsystematic risk, which is the risk that is specific to a particular company or industry. This is because unsystematic risk can be diversified away by investing in a wide range of stocks. For example, if an investor invests in a portfolio of 100 stocks, the risk of any … Read more
An index fund is a type of mutual fund that tracks the performance of a specific market index, such as the S&P 500 or the Dow Jones Industrial Average. Because index funds track a predefined set of assets, they offer a high level of diversification. By investing in an index fund, investors gain exposure to … Read more
Edward Jones Investments is a financial services firm that provides investment guidance and recommendations to its clients. While Edward Jones advisors are required to make suitable recommendations, they are not legally bound to act as fiduciaries. Fiduciaries have a duty to act in the best interests of their clients, and they must always put their … Read more
401k contributions are often automatically invested based on the employee’s pre-selected investment strategy. This strategy typically involves a mix of stocks, bonds, and other investment options. The specific allocation of funds between these asset classes depends on the employee’s investment goals, risk tolerance, and time horizon. The investment strategy is typically adjusted over time as … Read more