Risk

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Category: Business and Industry

Date Submitted: 02/13/2015 01:04 PM

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1. Option 1: The gambling trip could really be seen as both current income and capital appreciation. This is because when you are going gambling if you win you are going to receive an immediate payout. However, that payout is going to be larger than what you invested into it, and probably by a considerable margin. The current income would be more important.

Option 2: For common stocks it would qualify as both current income and capital appreciation. The current income in the form of dividends paid on a quarterly basis and the increase in the market price of the stock as capital appreciation. For common stocks the gain in capital appreciation is far more important.

Option 3: The baseball hit by Hank Aaron is much more so capital appreciation as you buy it as an investment expecting the value of it to significantly increase and sell it for a profit.

Option 4: The money you put into a savings account is more of a current income situation because the money you are earning from interest is so insignificant that even with it the value will not increase enough to even keep up with inflation.

Option 5: Buy buying partial ownership in the West Michigan Whitecaps you are buying the right to shares, usage rights, income sharing, among other perks that will give you both current income and capital appreciation. Depending on your percentage of ownership it is most likely that capital appreciation will be more important in this case.

Option 6: Bonds are similar to stocks in that they too have current income and capital appreciation. The current income comes in the form of semi-annual interest payments and the capital appreciation in the form of the bond increasing in value. However, for bonds the current income is far more important.

2. Year | Year end Price | Dividends |

2014 | $103.79 | $2.76 |

2013 | $88.47 | $2.59 |

2012 | $73.92 | $2.40 |

2011 | $65.91 | $2.25 |

2010 | $59.77 | $2.11 |

2009 | $62.86 | N/A |

Dividend Yield...