By combining bonds with stocks, one can lessen the risk of their portfolio. The money market is where one buys treasury bills and treasury bonds. These are issued by the government and are considered the safest form of investment. That is what this part of the project is going to determine. Risk can be divided up into two categories, systematic risk, and unsystematic risk.
Systematic risk is the risk the whole market undergoes.
This risk cannot be adjusted or reduced. Things that cause systematic risk to happen are the Fed s actions in the economy, or other economic factors that affect all companies. Unsystematic risk is specific risk to each individual company. The opposite is also true and Apple Computers can fall with bad earnings. There is a way of getting rid of unsystematic risk.