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Characterize the types of assets available for investment purposes by addressing the following: Stocks: describe this investment, including two types of stock classifications. Next, search

  1. Characterize the types of assets available for investment purposes by addressing the following:

    1. Stocks: describe this investment, including two types of stock classifications. Next, search online or in the textbook for an example of a stock investment, provide a brief description of the company, and the stocks recent performance. If you were planning to invest, would you be interested in this stock? Explain why or why not.

    2. Bonds: describe this investment, including two types of bond categories. Next, search online or in the textbook for an example of a bond investment, provide a brief description of the company, municipality, or government agency, and the bonds coupon interest rate. If you were planning to invest, would you be interested in this bond? Explain why or why not.

    3. Mutual Funds: describe this investment, including two types of funds. Next, search online or in the textbook for an example of a mutual fund investment, provide a brief description of the funds investment objectives, and its recent performance. If you were planning to invest, would you be interested in this mutual fund? Explain why or why not.

    4. Exchange Traded Funds (ETF): describe this investment, including two types of ETFs. Next, search online or in the textbook for an example of an ETF investment, provide a brief description of the ETFs investment objectives, and its recent performance. If you were planning to invest, would you be interested in this ETF? Explain why or why not.

    5. Real Estate: describe this type of investment, including how it differs from an investment in a share of stock or in a bond, and indicate two different ways that a person could invest in real estate. Next, search online for an example of a real estate investment, provide a brief description of the property and its price. If you were planning to invest, would you be interested in this real estate? Explain why or why not.

  2. Define key risks which could impact an investment portfolio by addressing the following:

    1. Define financial risk and indicate how it could impact a stock investment.

    2. Define market risk and indicate how it could impact a stock investment.

    3. Define interest rate risk and indicate how it could impact a bond investment.

    4. Define business risk and indicate how it could impact a stock and a bond investment.

    5. Define liquidity risk and indicate how it could impact a stock and a bond investment.

    6. Define two risks associated with a real estate investment.

  3. Discuss the types of returns available for investment assets by addressing the following:

    1. Stocks: discuss the type of current income associated with this type of investment. Is there a guarantee that the investor will always be paid this type of income? Explain why or why not.

    2. Bonds: discuss the type of current income associated with this type of investment. Is there a guarantee that the investor will always be paid this type of income? Explain why or why not.

    3. Mutual Funds: discuss the two types type of current income associated with this type of investment. Is there a guarantee that the investor will always be paid both types of income? Explain why or why not.

    4. Exchange Traded Funds (ETF): discuss the two types type of current income associated with this type of investment. Is there a guarantee that the investor will always be paid both types of income? Explain why or why not.

    5. Real Estate: discuss the type of current income associated with this type of investment. Is there a guarantee that the investor will always be paid this type of income? Explain why or why not.

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