2.04 What is stock anyways PDF

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Summary

Read and answer the questions thoroughly ...

Description

After completing the reading and activities in the lesson, develop your own investment plan. Base this investment plan on your results from the spinner activity on the activity tab. Choose three investment options from the chart for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions: ●

Explain how you obtained the money for investment.

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Why did you choose these three options?

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How do your choices reflect your tolerance for risk?

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How do you plan to divide your money between the three investment options you chose? Be sure to include the following terms in your explanation: ○

diversification

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risk

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rate of return

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interest rate

After completing the spinner, the three investment plans I chose were: MMA, Traditional Bank Account and Mutual Funds. I obtained $100,000 from my patented microscopic computer chip. I chose the stated investing options because they are helpful when investing large sums of money and are relatively safe as well. The risk factor of these investments reflect my tolerance for risk because they are moderate but it is also not guaranteed that I will make any money off of them. I will give 33,000 to each one of the investments and keep the remaining 10,000 for myself. Bye splitting this sum of money i will be increasing not only the rate of return but the interest rate along with it too....