Assessing Risk

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Unit 3 Discussion: Assessing Risk Tolerance

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This discussion supports learning objective:3.3.

Instructions

Please read the following scenario, complete the required task, and discuss the questions below.

Task

Consider your own tolerance for risk. Are you conservative, or aggressive in your investment philosophy? Here is a link to a

Risk Tolerance Calculator (Links to an external site.)Links to an external site.

that will help you determine the type of investment and strategy that is right for you.

Discussion Questions

Please discuss the following questions in your initial post:

· What are the results of your Risk Tolerance Questionnaire? What type of investor are you? Be sure to explain what this designation means, and if you feel that your score accurately reflects your personality regarding investing. Your choices are:

· Money Market mutual fund

· AAA rated Corporate bond

· US Government Treasury Bond

· A Corporate Junk bond

· A “Blue Chip” stock

· An emerging market stock

· With this investment philosophy in mind, select one investment from the list above that you feel is the best match for your philosophy. Please explain why you feel this is the best match.

· Identify an investment that would best suit Samantha’s and Martin’s level of risk.

· Contrast your investment risk tolerance level with Martin and Samantha. What is different about the investment that you advise for each of them?