After years of investing in risk-free government bonds

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After years of investing in risk-free government bonds, you just bought your first stock. It’s an up and coming candy company that makes upscale confections in the shape of corporate logos. They’ll prosper in a growing economy because corporations usually spend more on such silliness when profits are up. When you tell your finance tech about this new investment he says, “Given its risk, you paid too much for it”. Since you didn’t tell him what you paid or even the name of the company, how could he know that? If you were going to make one stock investment (not necessarily a single stock), what could you buy and not be paying too much for it?

Reference no: EM131850191

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