1. Why should people invest? Give three reasons each for college students, young college graduates in their 20s, couples with young children, and people in their 50s.

2. Review Figure, “Long-Term Rates of Return on Investments” on page 383, and offer your views on which two investment types would be most suitable for yourself.

3. Market Risk. What do you think is the likelihood of years of poor stock market returns?

4. Is it the same as for other members of your class? Why or why not?

5. Review Figure, “The Risk Pyramid Reveals the Trade-Offs Between Risk and Return” on page 385 and give your views on which three investments would be most suitable for you.

6. Is your investment philosophy conservative, moderate, or aggressive? Give two reasons to support the adoption of your philosophy. How does your view compare with the philosophies of other members of your class?

7. Review the section on “Types of Investment Risks” on page 391, and note two that might worry you the most in the world of investing.

8. Assume you have graduated from college and have a good-paying job. If you had to commit to investing regularly right now, how much money would you put away every month? Explain why. How does your view compare with the views of other members of your class?