Analyze the risk associated with exchange-traded derivatives

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Reference no: EM131996880

Assignment 2: High-risk Investments

For this assignment, use the Internet to research high-risk investment brokerage firms that have been indicted or convicted of ethical violations to provide insight and understanding of this market segment.

Write a six to eight (6-8) page paper in which you:

1. Explain why investors may be attracted to high-risk investments such as exchange-traded derivatives, global funds, and other complex investment vehicles.

2. Analyze the risk associated with exchange-traded derivatives, such as futures and options, and what brokers might do to minimize the risk to investors.

3. Discuss the challenges related to regulating a complex global financial firm and make suggestions for regulatory improvements.

4. Analyze the ethical violations of the company you researched.

5. Discuss the consequences that you believe to be appropriate for the senior management of the firm you researched and the implications for brokers trading in high-risk investments.

6. Create a scenario where you believe the use of high-risk investments would be beneficial for the investor. Provide support for your rationale.

7. Use four (4) external resources to support your work. Note: Wikipedia and other Websites do not qualify as academic resources.

Your assignment must follow these formatting requirements:

• Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA or school-specific format. Check with your professor for any additional instructions.

• Include a cover page containing the title of the assignment, the student's name, the professor's name, the course title, and the date. The cover page and the reference page are not included in the required page length.

The specific course learning outcomes associated with this assignment are:

• Analyze the derivatives market and determine the use of derivatives to efficiently manage investment risks in an investment portfolio.

• Use technology and information resources to research issues in corporate investment analysis.

• Write clearly and concisely about corporate investment analysis using proper writing mechanics.

Reference no: EM131996880

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