Tasks:
(1) Use the handout(s) provided and/or information from the D2L course and/or the textbook’s “Investing” chapters to learn about the three major investment options {bonds (corporate and government), stocks (common and preferred), and mutual funds. Real estate is also offered as an option} and the four factors for evaluating these choices. The four factors include safety and risk, investment income, investment growth, and investment liquidity. Your choice of investments should be based on your personal financial goals, your willingness to assume risk, your age, and the amount of time you have for your investments to work for you.
(2) Imagine you have funds (it doesn’t matter how much) to invest. Assume you must choose an investment that will help you obtain your investment goals. Using Practice Quiz 11-3 as a guide, rank the following investment options: corporate stocks, corporate bonds, government bonds, mutual funds, and real estate. Follow the key given in Practice Quiz 11-3, from 1 for low to 5 for high and justify your choice for your investment portfolio. See Exhibit 11-4 for help evaluating your investment choices. Your justification should be based on information presented in Chapters 11-13. For instance, are you interested in safety/risk, income, growth, and/or liquidity? How does your age affect your decision? How does the time factor affect your decision? As a part of this discussion, use the Suze Orman method to determine the percentage of your investments that should be invested in growth investments