Final answer:
Helen is practicing dollar-cost averaging by investing a fixed amount into stocks on a regular basis. Stocks generally offer higher returns over time compared to bonds or savings accounts due to their higher risk. High risk does not necessarily mean low returns but indicates the potential for higher returns.
Step-by-step explanation:
Helen is practicing dollar-cost averaging, an investment strategy where a person invests a fixed amount of money into a particular investment (like shares of ANYWHERE Inc.) on a regular basis, regardless of the share price. Over time, this strategy can potentially reduce the impact of volatility on the overall purchase of shares since more shares are purchased when prices are low, and fewer shares are bought when prices are high.
As for investment returns, historically, stocks have a higher average return over time when compared to bonds or a savings account, due to their higher risk nature. The potential for higher return comes from the ability of stocks to capitalize on the economic growth and the company's profits through capital gains and dividends.
However, a high-risk investment does not necessarily guarantee low returns. The concept of risk versus return is fundamental in finance; typically, higher risks are associated with the potential for higher returns. This is why diversification is an important strategy in investing, as it helps to mitigate risk by spreading out investments across a wide range of companies and asset classes.