FIN 402 Expect Success/uophelp.com FIN 402 Expect Success/uophelp.com | Page 32

Do not use Investopedia, About.com, Wikipedia, or other generic internet
websites as sources. Use credible sources only. Also, do not use quotes in
lieu of a response in your own words.
(2 point) For the following alternative investment vehicles, discuss:
a.
Describe the investment
b. Benefits of the investment
c.
Risk of the investment
Example:
Real Assets – investment in tangible assets, such as timber.
Benefits – provides higher risk adjusted returns over financial assets
Risk – highly illiquid, difficult to value
Investment Vehicles to discuss:
A. Commodities
B. Real estate (not REITs)
C. Call option
D. Put option
(1 point) Discuss the futures market. What types of investments are traded
in the futures market? Name two reasons why investors use the futures
market.
(2 points) Discuss two pros and two cons of using your employer provided
401(k)/403(b).
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