Questions from Personal Finance

Q: What are real estate investment trusts (REITs)? How are they

What are real estate investment trusts (REITs)? How are they classified? What are some attractive characteristics of REITs? How can REITs help diversify a portfolio?

Q: Explain how your tolerance for risk when investing may have changed by

Explain how your tolerance for risk when investing may have changed by the time you retire, and why.

Q: What is a call option? How does it work?

What is a call option? How does it work?

Q: What is a put option? How does it work?

What is a put option? How does it work?

Q: “There is a right way and a wrong way to use

“There is a right way and a wrong way to use stock options in asset allocation.” Evaluate this statement.

Q: Discuss the role that your stage in life plays in the asset

Discuss the role that your stage in life plays in the asset allocation decision.

Q: How does your risk tolerance affect the asset allocation decision?

How does your risk tolerance affect the asset allocation decision?

Q: How might your expectations of economic conditions influence your asset allocation?

How might your expectations of economic conditions influence your asset allocation? What is the problem with this strategy?

Q: What is meant by correlations among investments? How does correlation impact

What is meant by correlations among investments? How does correlation impact portfolio risk?

Q: Assume that 11 months ago you purchased stock in XYZ Company for

Assume that 11 months ago you purchased stock in XYZ Company for $50 a share. The stock price is now $72 a share but you would like to wait another month before selling the stock in order to pay a low...