Risk is defined as the variability of returns from an specific investment. The picture above shows the 2014 value of a $1 investment made in 1926 in various different vehicles. Looking at the above picture what is the relationship between risk and return? If you were a financial planner working for a firm such as Edward Jones, how would your investment advice be different for a client that had just graduated college, has 30 years to retirement and was just beginning to invest vs. a client that is at the end of their career, has 2 years to retirement and has accumulated enough money to retire comfortably?
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