Questions are based on two companies you chose to answer the questions

1. Pick two well-known companies now today that you would invest in, and what factors would you use to determine which company to invest in? Based on these factors, does one company seem riskier than the other?
2. How does the industry impact a companys risk? Would the risk associated with the industry/company you selected influence your decision to invest? Explain.
3. Look at the P/E ratios and dividend yield. What does the P/E ratio say about each company? Are they overvalued or undervalued? Why are the P/E ratio and dividend yield different?
4. Suppose you are risk-averse, but you have $1,000 you want to invest in the market. Which company would be the best to invest in? As a risk-averse investor, would you want to invest in individual stocks or in mutual funds? Explain.