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- Before investing, what are the factors you should take into considerations in order that your investment will be successful.3. What are the different investments? a. Create a diagram showing all possible investments. b. Which of the following investments are you considering to invest in? c. Which of the following investments are you NOT considering?Which of the following investments does a rational investor prefer? a. Investment A: E(R) = 12%, σ = 5% b. Investment B: E(R) = 10%, σ = 5.5% c. Investment C: E(R) = 11%, σ = 6% d. Investment D: E(R) = 11.5%, σ = 6%
- Which two statements about robo-advisors are true?a) They are programmed with the input of humans who are expert in the field b) They involve selecting from predetermined investment funds without involving a humanfinancial advisorc) They use an online smart system that asks preprogrammed questionsd) They involve mirroring a general investment fund’s return on the markete) They involve sitting down with an investment advisor who will ask questions about your risktolerance and your investment horizonProfessional financial planners should Multiple Choice A inform the client about the outcome of the plan. B assess their client's risk-and-return requirements on a one-time basis, explain the investment plan to the client, and inform the client about the outcome of the plan. C explain the investment plan to the client. D assess their client's risk-and-return requirements on a one-time basis. E explain the investment plan to the client and inform the client about the outcome of the plan.According to the article titled “Living in the Future” finance managers should focus on scenarios that are plausible than those that are probable, true, or false?
- Discuss the overall purpose people have for investing.An investor seeking to invest in one of these three alternatives: Islamic mutual funds, ETFs or REITS. (a) if he wants stable returns and needs annual income, what would you recommend to the investor? Justify (b) If the investor interested. capital gains, what would you recommend?Differentiate among the three basic risk preferences: risk-indifferent, risk-averse, and risk-seeking. Which of these attitudes toward risk best describes most investors? How do you define yourself when it comes to dealing with risk?
- You have two investments that have positive net present values and are financially feasible. Your boss wants you to make a recommendation on which one of the two to invest in given different useful lives? How do you account for this/make the decision?Discuss the 3 categories of Risk Preference of an Investor, namely: •Risk Seeking •Risk Neutral •Risk Averse and how it affect risk tolerance of an investor.to advice a relative or a close friend in terms of investment, what is the best suggest to invest in a low risk outlet such as the money market or to a high risk outlet such as equity?
