Explain various types of investments

Assignment Help Macroeconomics
Reference no: EM133202948

An investment portfolio is a collection of investments or assets that a person or business has. In this assignment, you are going to pretend that your grandmother recently won $40,000 in the lottery. She needs advice on how to invest this money. Since you have just completed this section about investing, you offer to help her out.

Part 1

Use the information that you have learned in this section about various types of investments and their benefits and drawbacks to help your grandmother make investment portfolio. The portfolio should detail the types of investments she should choose, how much she should devote to each investment, and the reasons for choosing those investments over others. She must choose to invest the money in at least two different types of investments. You must provide a description of each investment and explain your reasons for choosing those types. Keep in mind that her needs are different than your needs. For instance, she is nearing retirement age, so she may not be as interested in riskier investments as a younger person might be.

Part 2

Now, what if YOU won that $40,000 in the lottery? How might you, based on your age and needs, invest the money differently than the ways you advised your grandmother? Be sure to explain completely why you would choose different investments over those advised to your grandmother.

Reference no: EM133202948

Questions Cloud

What is the eps and dividend growth in years : Problem: Kraft Food current stock price is 53.50. Kraft Food ROE today is 13.25%. The Plowback ratio for Kraft Food is .375%. Three years later Kraft Food is be
How did that affect the characters : How did that affect the characters. The religious or ceremonial actions occurring at the site. The day to day activities of the people at the site
Which consumers were legos traditional target audience : Which consumers were LEGO's traditional target audience? How did that change over time? What issue do you see with these choices?
Identify the strategic leadership style of that organization : Each student will find an organization of his or her choosing and you will identify the strategic leadership style of that organization
Explain various types of investments : An investment portfolio is a collection of investments or assets that a person or business has. In this assignment, you are going to pretend that your grandmoth
Why are values described as organization-guiding principles : Why are values described as organization-guiding principles and, how do our faith, cultural values, and personal values integrate with our work and the values
Complete cost-benefit analysis for an mri machine : Complete the Cost-Benefit Analysis Template for the purchase of an MRI machine for the clinic. Explain how cost-benefit analysis aligns with organizational need
Where appropriate make realistic assumptions in analysis : Where appropriate make realistic assumptions in your analysis. Focus on "logistics and transportation" issues, be decisive: "Go or No-Go"
Evaluate effectiveness of organizations mission statement : Evaluate the effectiveness of the organization's mission statement. What changes would you propose the organization make to the mission statement?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd