Chapter 12 Financial Planning Exercise 5 Choosing appropriate stocks Assume that you've just inherited $500,000 and have decided to invest a big chunk of it ($350,000 to be exact) in common stocks. Your objective is to build up as much capital as you can over the next 15 to 20 years, and you're willing to tolerate a "good deal" of risk. What types of stocks ( blue chips, income stocks, and so on) do you think you'd be most interested in, and why? Select at least three types of stocks and briefly explain the rationale for each. Would your selections change if you were dealing with a smaller amount of money - say, only $50,000? What if you were a more risk-adverse investor?
Chapter 12 Financial Planning Exercise 5 Choosing appropriate stocks Assume that you've just inherited $500,000 and have decided to invest a big chunk of it ($350,000 to be exact) in common stocks. Your objective is to build up as much capital as you can over the next 15 to 20 years, and you're willing to tolerate a "good deal" of risk. What types of stocks ( blue chips, income stocks, and so on) do you think you'd be most interested in, and why? Select at least three types of stocks and briefly explain the rationale for each. Would your selections change if you were dealing with a smaller amount of money - say, only $50,000? What if you were a more risk-adverse investor?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Chapter 12 Financial Planning Exercise 5 Choosing appropriate stocks Assume that you've just inherited $500,000 and
have decided to invest a big chunk of it ($350,000 to be exact) in common stocks. Your objective is to build up as much
capital as you can over the next 15 to 20 years, and you're willing to tolerate a "good deal" of risk. What types of stocks (
blue chips, income stocks, and so on) do you think you'd be most interested in, and why? Select at least three types of
stocks and briefly explain the rationale for each. Would your selections change if you were dealing with a smaller amount
of money - say, only $50,000? What if you were a more risk - adverse investor?
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