Reference no: EM133157600

Question - Charles and Mary are senior accounting majors at a large university they have been good friends since high school and look forward to their graduation at the ed of next semester. Each has already found a job, which will begin upon graduation. Charles has accepted a position as an internal auditor in a medium sized manufacturing firm, while Mary will be working for one of the major public accounting firms. Each is looking forward to the challenge of a new career and is hopeful that he/she can achieve success both professionally and financially. Charles and Mary are preparing to register for their final semester. Each has one free elective to select. Charles is considering taking a racquetball course offered by the physical education department, while Mary is planning to take basic investments course. Mary has been trying to convince Charles to take investments instead of racquetball. Charles believes that he doesn't need to take investments, since he already knows what common stock is. He believes that whenever he has accumulated excess funds, he can invest in the stock of a company that is doing well. Mary argues that there is much more to it than simply choosing common stock. She feels that an exposure to the field of investments would certainly be more beneficial than earning how to play racquetball.

Required -

1. List and discuss other investment alternatives you can suggest to Charles citing the advantages/disadvantages and constraints.

2. What arguments would you give in order to convince Charles to take investments rather than racquetball?