Questions from General Investment

Q: Calvin Jacobs is a widower who recently retired after a long career

Calvin Jacobs is a widower who recently retired after a long career with a major Midwestern manufacturer. Beginning as a skilled craftsman, he worked his way up to the level of shop supervisor over a...

Q: What is the source of return on futures contracts? What measure

What is the source of return on futures contracts? What measure is used to calculate the return on a commodities contract?

Q: Note several approaches to investing in commodities and explain the investment objectives

Note several approaches to investing in commodities and explain the investment objectives of each.

Q: Why do investors bother to look at the historical performance of a

Why do investors bother to look at the historical performance of a company when future behavior is what really counts? Explain.

Q: What is the relation between an investment’s risk and its return?

What is the relation between an investment’s risk and its return?

Q: Distinguish between the types of dividend distributions that mutual funds make.

Distinguish between the types of dividend distributions that mutual funds make. Are these dividends the only source of return for a mutual fund investor? Explain.

Q: Define the term risk, and explain how risk is used to

Define the term risk, and explain how risk is used to differentiate among investments.

Q: What are foreign investments, and what role do they play for

What are foreign investments, and what role do they play for the individual investor?

Q: Describe the structure of the overall investment process. Explain the role

Describe the structure of the overall investment process. Explain the role played by financial institutions and financial markets.

Q: Classify the roles of (a) government, (b)

Classify the roles of (a) government, (b) business, and (c) individuals as net suppliers or net demanders of funds.