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
FOR MORE CLASSES VISIT www. fin420assist. com
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?