Scenario: You are 27 years old and willing to invest $1,250 every other month for the next 15 years. You prefer a conservative-to-moderate investment strategy and have a risk-averse to risk-neutral tolerance for risk. Your highest priority in your investment strategy is preparing you and any family that you might have in the future for your retirement. You also regularly set aside money into savings and CDs to pay for vacations or similar large-ticket items. You've assembled a table of information and company descriptions for some new stocks and bonds that you are thinking about adding to your investment portfolio. Currently, your portfolio consists of 20 blue-chip stocks, and you're thinking about increasing your diversification by adding some different types of stocks.

The following are descriptions of potential firms to be added to your portfolio:

	Blue Llama Petroleum Company is an oil company whose sales prices, profits, and share price are low when the economy does well. Its beta is -0.95.
	Blue Panda Ice Cream Company's sales and profits are tied to customer incomes and the state of the economy. As a result, it has a beta of about 1.0.
	Hungry Whale Electronics is a small firm on the bleeding edge of technology. It has a market capitalization of $800 million. It exhibits solid sales and share-price performance but participates in an extremely competitive industry.
	Lumbering Ox Truckmakers has invented a truly new product that may revolutionize its industry. Lumbering Ox's share price is rising but if the company can't get its essential inventory and critical components or if its marketing plan isn't successful then its sales and profits will decrease significantly and the company could fail. The result is a fluctuating P/E ratio and a beta of 2.30.

If you wanted to invest in a countercyclical stock company (based on index), you should invest in (Blue Llama Petroleum/Blue Panda Ice Cream/Hungry Whale Electronics/Lumbering Ox Truckmakers)

If you wanted to invest in a cyclical stock company, you should invest in (Blue Llama Petroleum/Blue Panda Ice Cream/Hungry Whale Electronics/Lumbering Ox Truckmakers)

If you wanted to invest in a small-cap company, you should invest in (Blue Llama Petroleum/Blue Panda Ice Cream/Hungry Whale Electronics/Lumbering Ox Truckmakers)

If you wanted to invest in a speculative stock company (based on industry), you should invest in (Blue Llama Petroleum/Blue Panda Ice Cream/Hungry Whale Electronics/Lumbering Ox Truckmakers)

Now, think about the available attributes of common and preferred stock issues and bond issues, and answer the following questions.

If you want to invest in a security that pays you a stable cash flow every six months, then you should consider investing in (bonds/preferred stock/common stock)

If you want to invest in a security that allows you to participate in the selection of a companys management team, including its board of directors, then you should invest in (bonds/preferred stock/common stock)

If you want to be able to purchase additional shares before new shares are offered to the public, then you should ensure that common shares have a (preemptive right/market right/proportional right)

Assume that youve selected the investments that you want to add to your portfolio. Now you must consider who to contact to make the purchases and the types of orders to place.

If you want to incur the lowest possible commissions and fees, then you should use (full-service brokerage firm/an online discount brokerage)

If you wanted to place a buy order that requires your new shares to be purchased immediately at the prevailing market price, then you should ask for a (limit/fill-or-kill/matched) order.

If you wanted to place a buy order that requires your new shares to be purchased at a given priceand the order remains open until it is either executed or cancelled (good-till-cancelled/stop-loss/fill-or-kill) order.