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Assume the role of an investor;

Choose one (or more) investments that the investor would likely make from the following choices: common stock, preferred stock, and/or bond.

Answer the follow-on questions:

First, choose one of the following profiles:

Investor A: 25-year-old, first-time investor with $5,000 to invest. Long-term investment goals.

Investor B: 50-year-old with $200,000 in savings. Looking to diversify an investment portfolio and reduce risk as retirement approaches.

Investor C: Retired 65-year-old with $1.2M in savings. Looking for steady, fixed-income investments.

Then, answer these follow-on questions based on your choices:

1) Describe one valuation method for each investment choice you made?

2) Describe the impact that interest rates have on your investment choices?

Answer rating: 100% (QA)

I will choose Investor B who is looking to diversify an investment portfolio and reduce risk as reti... View the full answer