What are the results of your risk tolerance questionnaire

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Reference no: EM131897161

Discussion : Assessing Risk Tolerance

Instructions

Please read the following scenario, complete the required task, and discuss the questions below.

Martin and Samantha need your help again to determine the best course of action for their company.

Your Name Corporation has decided to offer an employee 401(k) retirement plan. This plan will consist of the following mutual fund investment choices.

• Money Market mutual fund

• AAA rated Corporate bond fund

• US Government Treasury Bond fund

• A Corporate Junk bond fund

• A "Blue Chip" stock fund

• An emerging market stock fund

Martin feels that he is a conservative investor, while Samantha considers herself to be an above-average risk investor.

Please help them understand which investment choice would best match with their personal tolerance for risk.

Task

Consider your own tolerance for risk. Are you conservative, or aggressive in your investment philosophy? A Risk Tolerance Calculator that will help you determine the type of investment and strategy that is right for you.

Discussion Questions

Please discuss the following questions in your initial post:

• What are the results of your Risk Tolerance Questionnaire? What type of investor are you?

Be sure to explain what this designation means, and if you feel that your score accurately reflects your personality regarding investing.

Your choices are:

o Money Market mutual fund

o AAA rated Corporate bond

o US Government Treasury Bond

o A Corporate Junk bond

o A "Blue Chip" stock

o An emerging market stock

• With this investment philosophy in mind, select one investment from the list above that you feel is the best match for your philosophy.

Please explain why you feel this is the best match.

• Identify an investment that would best suit Samantha's and Martin's level of risk.

• Contrast your investment risk tolerance level with Martin and Samantha. What is different about the investment that you advise for each of them?

Reference no: EM131897161

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