Analyze the factors that affect interest rates and forecast

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Reference no: EM13887514

Write a five to six (5-6) page paper in which you:

Analyze the role financial markets play in creating economic wealth in the U.S.

Provide a general overview of each of the three (3) securities you chose. Be sure to include such information as name, company it

represents (if applicable), pricing, and historical performance.

Assess the current risk return relationship of each of the three (3) securities.

Recommend one (1) strategy for maximizing return for the current risk return relationship identified for each of the three (3) securities.

Suggest how the Federal Reserve and its monetary policy affect each of the three (3) securities today.

Determine whether each of the three (3) securities is a good investment in the next twelve (12) months, five (5) years, and ten (10)

years. Provide a rationale for each security with your determination.

Use at least six (6) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic

resources.

The specific course learning outcomes associated with this assignment are:

Describe the various types of financial markets and the types of transactions supported by each market in the U.S. and globally.

Explain the operation of the Federal Reserve and describe how monetary policy is used in the U.S. and other countries to manage the

economy

Determine the valuation of various types of securities.

Assess the risks in the various types of financial markets and develop strategies to manage the risks.

Use technology and information resources to research issues in financial markets and institutions.

Write clearly and concisely about financial markets and institutions using proper writing mechanics.

The following additional outcomes may apply depending upon the students choice of securities:

Develop strategies for the use of equity markets by investors and firms to meet stated financial objectives.

Analyze the factors that affect interest rates and forecast interest rate changes.


Questions

1. Analyze the role financial markets play in creating economic wealth in the U.S.

2. Provide a general overview of each of the three (3) securities you chose.

3. Assess the current risk return relationship of each of the three (3) securities.

4. Recommend one (1) strategy for maximizing return for the current risk return relationship identified for each of the three (3) securities.

5. Suggest how the Federal Reserve and its monetary policy affect each of the three (3) securities today.

6. Determine whether each of the three (3) securities is a good investment in the next 12 months, 5 years, and 10 years. Provide a rationale for each security with your determination.

Reference no: EM13887514

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