What if the investor were more risk-averse

Assignment Help Accounting Basics
Reference no: EM131624526

Question: Assume that a wealthy woman comes to you looking for some investment advice. She is in her early forties and has $250,000 to put into stocks. She wants to build up as much capital as she can over a 15-year period and is willing to tolerate a "fair amount" of risk.

a. What types of stocks do you think would be most suitable for this investor? Come up with at least three types of stocks, and briefly explain the rationale for each.

b. Would your recommendations change if you were dealing with a smaller amount of money-say, $50,000? What if the investor were more risk-averse? Explain.

Reference no: EM131624526

Questions Cloud

How much in dividends was paid to shareholders : How much in dividends was paid to shareholders during the year?
Discuss the time came for the lease to be renewed : Pontus leased a shop from Westminster Properties, and he also lived on the premises. When the time came for the lease to be renewed
Prepare a report examining this phenomenon : Explain how you could use high patient satisfaction results to your advantage when negotiating a new managed care contract for the hospital.
Cash flow from financing activites : what was ABC's "cash flow from financing activites" reported in its Statement of Cash Flows?
What if the investor were more risk-averse : Would your recommendations change if you were dealing with a smaller amount of money-say, $50,000? What if the investor were more risk-averse? Explain.
What was the firm economic value added : What was the firm's economic value added (EVA), that is, how much value did management add to stockholders' wealth during 2016?
Define the copyright interests of psu : Ray sells his notes to Nittany Notes. Has Ray infringed the copyright interests of PSU and the authors of the text
Find the latest market value of the securities in each pair : Listed below are three pairs of stocks. Look at each pair and select the security you would like to own, given that you want to select the one that's worth.
How will increasing your level of education affect your role : How will increasing your level of education affect your role in the future of nursing?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Problem regarding the phenomenological grounds

On phenomenological grounds, and from past  experience,  a  gamma distribution has been postulated for the population from which the data was sampled. The population parameters are unavailable. Carry out an A-D test to validate this probability mo..

  How are the income statement and statement of cash flows

how are the income statement and statement of cash flows similar? different? provide examples. what can you tell from

  The project stakeholders their roles and responsibilities

The project stakeholders, their roles and responsibilities, locations, and communication requirements. For ideas, you can refer to projects that are similar to the one you have chosen to work with.

  The city of bedford is studying a 600-acre site on route

the city of bedford is studying a 600-acre site on route 356 for a new landfill. the startup cost has been calculated

  What income does it report on mary''s schedule k-1

What income does it report on Mary's Schedule K-1.

  Eva is used by top management at college learning

eva is used by top management at college learning technologies to measure and evaluate the performance of segment

  Caballero manufacturing incurs unit costs of 15 10 variable

caballero manufacturing incurs unit costs of 15 10 variable and 5 fixed in making a sub-assembly part for its finished

  The demand forecast for next four periods is 80 110 120 and

the demand forecast for the next four periods is 80 110 120 and 145 units respectively. the plant has a regular

  Excerpts from goodrow corporations most recent balance

excerpts from goodrow corporations most recent balance sheet and income statement appear below year 2 year 1 total

  On january 1 of year 1 drum line airways issued 3400000 of

on january 1 of year 1 drum line airways issued 3400000 of par value bonds for 3100000. the bonds pay interest

  Daley company estimates uncollectible accounts

Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

  The danville manufacturing company has two service

the danville manufacturing company has two service departments and two producing departments. the following data are

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd