1. Knowing the Steeles’ financial background, particularly their financial goals, do you feel that most of their money should be invested in stocks or bonds? Discuss.
2. Suppose your preceding answer is “stocks.” Indicate what types of stocks are most appropriate for the Steeles. For example, is MeadWestvaco a better choice than Intel or Kellogg? Discuss. (You might want to dig a bit more deeply into these three companies. From the Internet, find a price chart that goes back to 1998. How have the prices of these stocks done since then?)
3. Suppose your preceding answer is “bonds.” What types of bonds are most appropriate for the Steeles? Recommend specific bonds, such as “a corporate bond with a 20-year maturity” or “a Treasury STRIP with a 10-year maturity.” Explain your choice(s).
4. Assume the Steeles have done their research and subsequently invest in several companies. What financial information should they use to monitor their results? You can limit your answer to Internet sources. Indeed, you need go no further than financial data available through Yahoo!’s Finance company listings.