Answered

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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 :

Parrain

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.

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