Question

Assume you have $100,000 in savings. Pick a stock, bond, or mutual fund that you would invest your money into. You can choose one investment or multiple.

• Share their current prices (value of stock/mutual fund/bond) as listed in the newspaper.
  *This information can be found online.
  
• What objectives do you have for this investment? Was it chosen to maximize short-term gains, long-term stability, or some other objective?
  
• Explain how each of the following economic events would affect the value of your portfolio:
  • an increase or decrease in interest rates
  • a recession
  • rapid inflation
  • a depreciation of the U.S. dollar

Answer 1

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