Answered

Discover a world of knowledge and get your questions answered at IDNLearn.com. Join our interactive Q&A community and get reliable, detailed answers from experienced professionals across a variety of topics.

1. Marc and Julian are considering the following investments for their portfolio. Help
them evaluate each one by weighing the risk versus return. Rank each as low,
moderate, or high in each category. (12 points)

1 Marc And Julian Are Considering The Following Investments For Their Portfolio Help Them Evaluate Each One By Weighing The Risk Versus Return Rank Each As Low class=

Sagot :

Parrainidn

The risk versus return of the investments that Marc and Julian are considering are:

  • Money Market savings account - Low.
  • IRA - Moderate.
  • Stock in new high tech company - High.
  • Mutual Fund - Moderate.
  • Five year CD (2% interest) - Low.
  • High-yield five-year bond - High.

How risky are these investments?

Money Market savings accounts are offered by commercial banks and are quite safe which is why they have low returns. The same is true of a Five year CD.

IRAs and Mutual funds are considered moderate because they offer higher rates than CDs but with higher risk as well.

Stock and high-yield bonds are quite risky but they have a chance of a high return as well.

Find out more on the riskiness of high yield bonds at https://brainly.com/question/25791702.

#SPJ1

We greatly appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. Thank you for choosing IDNLearn.com. We’re committed to providing accurate answers, so visit us again soon.