Imagine that you have $100,000 to invest

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Reference no: EM13732692

Imagine that you have $100,000 to invest. You are going to invest it all in one investment for the next 5 years, at least, at which point you will reevaluate both your investment and personal situations.
You will invest it all in one of the following investments- these are your only 2 options:
1. A bank account earning 5% per year.
2. A common stock of __________.
You will be performing the analysis from the perspective of an investor who is 25 years from retirement and the investor's income is greater than living expenses. The investor has a liquid net worth of 1,000,000 of which 40% is invested in the S&P 500 index, 40% in a medium-duration, a high quality bond fund and 20% in a savings account earning 5% interest per year. You are to determine if the investor should take $100,000 from the savings account and purchase $100,000 of this company's common stock.
Where are you going to invest your $100,000? Why?
-I'm trying to figure out what the problem is/what I'm trying to figure out and what the best decision for this investment would be and why?

Reference no: EM13732692

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