Need some help with personal managment merit badge questions?

Explain the following

A) The difference between saving and investing, including reasons for using one over the other.
B) The concepts of return on investment and risk.
C) The concepts of simple interest and compound interest and how these affected the results of your investment exercise.

Sort of defeats the purpose if we give you the answers.

a. Saving and investing can mean the same thing. Usually investing implies buying an asset (like shares of stock), for the long term. Saving usually refers to putting some money aside in the bank for a rainy day.

b. Risk is related to return - the higher the risk, the higher the potential return. If you went and bought options on a volatile stock you would be taking an enormous risk, but the payoff could be huge. Or you could lose it all.

c. Just google those terms.

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