who do not want to take risk,especially for aged people. Liquidity is more Can be closed be
before maturity in case of need,with a minor penalty
Treasury Bonds Risk is less and income is slightly better than Bank deposit. Usually for long term
In case of necessity for money cannot be cashed immediately.
Common Stock High Risk and high income. Good for long term. Chances are there to incur loss
I have a study project where I need to analyse different investment opportunities such as term deposit, treasury bond and common stock. Each must be brought at one point in time using common discount rate. Which discount rate in real world should I use? Fed Discount rate or some other?