Question: Derek has been doing some intensive research on the internet and find that FRXME, a foreign exchange trading firm, claimed to make an average return

Derek has been doing some intensive research on the internet and find that FRXME, a foreign exchange trading firm, claimed to make an average return on investment of 60% per annum over the last two years. Derek hopes he will be able to persuade Erica to invest their $90,000 savings in FRXME for a period of three years, while investing any additional future monthly savings in the bank. Erica laughs at his idea and insists that their money should stay in the fixed deposit.

Is the internet a good source of investment information? Can the figures claimed by FRXME be trusted? If you are in Derek's shoes, how would you verify any financial or investment related information that you found on the internet?

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