stocks . After talking with friends and relatives , you have decided that you have “ too many eggs in one basket .” Based on this information , use the asset allocation method described in this chapter and use the following table to diversify your investment portfolio . Then answer the following two questions : o What are the advantages of asset allocation ? How could the time your investments have to work for you and your age affect your asset allocation ? =================================================== FIN 420 Week 3 Learning Team Problems
stocks . After talking with friends and relatives , you have decided that you have “ too many eggs in one basket .” Based on this information , use the asset allocation method described in this chapter and use the following table to diversify your investment portfolio . Then answer the following two questions : o What are the advantages of asset allocation ? How could the time your investments have to work for you and your age affect your asset allocation ? =================================================== FIN 420 Week 3 Learning Team Problems
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Assume that you are choosing an investment for your retired parents . What are the advantages and disadvanges of each of the following ? o a bond issued by the federal government , o a state or local government , o or a corporation ?
· Which would you recommend for your retired parents ? Justify your answer .
· Five years ago , you purchased a $ 1,000 corporate bond issued by General Electric . The interest rate for the bond was 5 %. Comparable bonds are paying 6 % today . o What is the approximate dollar price for which you could sell your General Electric bond ? o In your own words , describe why your bond decreased in value .
· Sidney took a $ 200 cash advance by using checks linked to her credit card account . The bank charges a 2 % cash advance fee on the amount borrowed and offers no grace period on cash advances . Sidney paid the balance in full when the bill arrived . o What was the cash advance fee ?