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    Risk

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    1. You have a friend who is always getting into trouble by taking unwise risks. What advice, based on what you have learned in this course, would you give this person? Conversely, what advice would you give someone you believe to be excessively wary of risk? Also, assume you are an investor in the stock market. What would be your position in that market now?

    2. The friend is 30 and has saved $6,000. Wants to put it into something that pays better than a passbook savings account. Is starting to think about saving for retirement, once the student loans are paid off.

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    https://brainmass.com/economics/risk-analysis/98351

    Solution Preview

    I will advice the friend to avoid getting into riskier investments by putting all his eggs into one basket or in other words, putting all his investments in one place and thus exposing himself to huge risks. Instead, he should diversify his risk by putting his instruments into different places or instruments, such as fized income products, equities, etc.Since he hasn't made much money in ...

    Solution Summary

    You have a friend who is always getting into trouble by taking unwise risks. What advice, based on what you have learned in this course, would you give this person? Conversely, what advice would you give someone you believe to be excessively wary of risk? Also, assume you are an investor in the stock market. What would be your position in that market now?

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