Based on the potential return and the potential risk, what are you going to do with the $10,000?Discuss

Description.

 

We have many options for how to save, invest, or allocate our money. Some of these include savings accounts, CDs, mutual funds, real estate, and so on. Suppose you win $10,000 in the lottery and you want to invest it! Look up the details of two different investment opportunities (you can find these at your local bank, on the internet, etc.)

Present the types of investments you looked up and the details surrounding them. What is the expected return? How liquid is your investment – meaning, is your money always available to you, or is it tied up in an asset? What are the risks and benefits of investing your money this way?

Then, using the material and ideas from Chapter 8, compare the two investments mathematically and describe what the pros and cons of each investment are using numbers. How much could you earn (or lose) in each investment? How did you calculate those values? Show or explain your calculations, what formulas you used, why you used those formulas, and what you obtained.

Based on the potential return and the potential risk, what are you going to do with the $10,000?

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