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

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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