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2.2A. Economic turmoil and uncertainty often impact investment behavior and decision making related to investments and the related liquidity. Predict how most investors are likely
- 2.2A. Economic turmoil and uncertainty often impact investment behavior and decision making related to investments and the related liquidity. Predict how most investors are likely to react with their investment decision making in times of turmoil, indicating the effectiveness of such decisions. Provide support for your rationale.
- 2.2B. Assess how likely you are to choose the investment option and the basis for your decision. Evaluate other alternatives to money market accounting that may align with your investment strategy.
- 3.1A. From the e-Activity Part 1, based on your review of the government and municipality bond price / yield rate, determine the type of investor that is most likely to be attracted to government bonds with a short-term versus a long-term date to maturity. Provide support for rationale.
- 3.1B. Evaluate the risk and reward proposition for an investor considering purchasing a government versus corporate bond, indicating the key factors to be considered to determine the investor level of risk tolerance and the impact to his decision.
- 3.2A. New regulatory requirement imposed on banks and financial institutions may have impacted a bank?s ability to generate mortgages for home buyers by increased requirements for disclosures, notices, statements, and documents related to lending. Evaluate the pros and cons of increased regulatory requirement, indicating the impact to the lender and the buyer. Provide support for your answer.
- 3.2B.Basedonyourreviewofthemortgageratetrends,predictthefuture(withinayear)rateofthe30-yearfixedandthe15-yearfixedratemortgage,indicatingthebasisandrationaleofyourprediction,andtheresultingimpacttothemortgageindustry.
*E-activities that are referenced are attached in a word doc
E-activities for Q 1 & 2 Research the history of the federal funds rate including the current rate. Be prepared to discuss. Go to the bank Website where you currently do business or would like to do business and find the current rate on its money market accounts. Be prepared to discuss. E-activities for Q 3 - 6 Go to Bloomberg's bond site at http://www.bloomberg.com/markets/ratesbonds/government-bonds/us/ and review the bond price/yield rate for government and municipalities. Be prepared to discuss. Go to Bloomberg's Website related to key-market rates at http://www.bloomberg.com/markets/rates-bonds/key-rates/ and review the mortgage rates (national average) trends over the past year. Be prepared to discuss
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