FIN 402 MASTER 1 Predictable World / fin402master.com FIN 402 MASTER 1 Predictable World / fin402master. | Page 32

3. (1 point) Identify two leading indicators for the economy and
two lagging indicators. Discuss 1. what these metrics indicate about
the economy and 2. what is the most recent statistic on your selected
indicators and what that may mean for our current economy.
Example: Retail sales – leading indicator; shows consumer’s
confidence in the economy – if they are willing to spend more money,
they feel more confident about their job situation; currently, retail
sales are just under 3% yoy and shows consumers are still willing to
spend
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FIN 402 Week 3 Assignment Case Problem 6.1 Sara Decides
to Take the Plunge
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Case Problem 6.1 Sara Decides to Take the Plunge Sara Thomas is a
child psychologist who has built a thriving practice in her hometown
of Boise, Idaho. Over the past several years she has been able to
accumulate a substantial sum of money. She has worked long and
hard to be successful, but she never imagined anything like this. Even
so, success has not spoiled Sara. Still single, she keeps to her old
circle of friends. One of her closest friends is Terry Jenkins, who
happens to be a stockbroker and who acts as Sara’s financial advisor.
Not long ago Sara attended a seminar on investing in the stock
market, and since then she’s been doing some reading about the
market. She has concluded that keeping all of her money in low-
yielding savings accounts doesn’t make sense. As a result, Sara has
decided to move part of her money to stocks. One evening, Sara told