Risk Free System

nycjoe29 asked:


Many people have lost their houses and savings. Shouldn’t professional lenders explain interest rate risks to less sophosticated customers? In Wall Street, financial professionals can be sewed for buying investments that are too risky for certain investors. Why is this not the case for lenders?

Cara

Yahoo Asker asked:


The value of preferred stocks, government bonds, and corporate bonds:
a.decreases when overall interest rates increase and rises when
overall interest rates decrease.
b.increases when overall interest rates increase and falls when
overall interest rates decrease.
c.depends mostly on the condition of the stock market at any
particular point in time.
d.is unaffected by changes in market interest rates because
these securities always sell at their face value.

Which one of the following statements is false?
a.During inflationary times, there is a risk that the financial
return on an investment will not keep pace with the rate of
inflation.
b.Market risk associated with investments in bonds is the
result of changes in the interest rates in the economy.
c.The risk of business failure is associated with investments
in common stock, preferred stock, and corporate bonds.
d.The price of stocks, bonds, and other investments may
fluctuate because of the behavior of investors in the
marketplace.

Melanie

God’sStrength asked:


I always invested in mutual funds but more conservative and growth. Now, I’m investing in aggressive mutual funds. Will I see high returns. Also, why is it that investors are always trying to get their clients to invest in conservative type investments. Some people don’t mind taking chances like me. High risks equal high returns. Anyway, has anybody ever or currently are investing in high risk aggressive mutual funds and how are the returns?

Julius

fads2914 asked:


Suppose that you are a portfolio manager and you expect that some investors of your fund will cash out their investments in the next three months. How would you use S&P 500 futures to hedge the risk of changing stock prices?

Valerie

presidentrichardnixon asked:


For example, CDs give favorable returns since investors have limited access to those funds for a certain period of time. Stocks, however, can be sold at any point. What types of investments can I purchase if I don’t need that liquidity at all times (like a CD), but I would like to take on the additional risk, which may offer higher returns.

Emilee