FIN 420 ASSIST Career Path Begins/fin420assist.com FIN 420 ASSIST Career Path Begins/fin420assist.com | Page 5

saving over the next 10 years? (Assume monthly cash flows, and an
annual interest rate of 4 percent.)
---------------------------------------------------------------------------------------

FIN 420 Week 3 DQ 1

FOR MORE CLASSES VISIT
www.fin420assist.com
Evaluate your personal risk tolerance using Exhibit 11-2 A Quick Test
to Measure Investment Risk in Ch. 11 of Focus on Personal Finance.
Based on your results, were you considered more conservative or less
conservative? What factors affected your investment choices?
Consider a friend or family member who is more conservative or less
conservative than you. How do their money management behaviors
differ from your own?
---------------------------------------------------------------------------------------

FIN 420 Week 3 DQ 2

FOR MORE CLASSES VISIT
www.fin420assist.com
Financial experts agree that having an emergency fund is an essential
component of a comprehensive financial plan. However, advice
regarding the number of months of household expenses the emergency
fund should cover varies between 3 and 9 months. Taking into account
the current financial environment, how many months of expenses
would you recommend for an emergency fund and why? What are
three investment options that are appropriate for an emergency fund?
Which of these investment options offer the best returns? What
reasons might encourage you to forego a higher return on your
emergency funds?
---------------------------------------------------------------------------------------