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Bus655 Financial Investment

In: Business and Management

Submitted By echobyroad
Words 2971
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Week 6 Portfolio
Echo Koenig
BUS655 Financial Investment
Instructor: Keithe Wade
June 23rd 2014

The main objective for this portfolio is to invest in companies that have a medium risk. I am part of the middle class society so I don’t want to invest in high risk companies since losing money isn’t an option. I will chose companies that can increase my monetary value in a long period of time, possibly for retirement. The main companies that I am looking to invest in are long term investments with a medium to high risk. I have 3 young children right now that are going to need cars in the future, college funds, and money for their weddings. I do want my savings to be geared towards the future of 20 plus years.
The main objective to my portfolio is to save for my children’s’ education in the future. I would like to have about $100,000 per child in the next 18 years. I have three children so I ultimately would need $300,000 in order to have funding for all of their education.
You can invest in three different types of investments. The first being a low risk (risk averse), medium risk (risk neutral), and high risk (risk seeker). A risk averse is an investor that will chose the lower risk when they are faced with two investments that have a similar expected return. A risk neutral is an investor that is indifferent to risk. A risk seeker will search for uncertain investments with the highest possibility for return.
Two companies that I would invest in for this portfolio are IBM and MAC. These are relatively moderate investments that should yield a good return. There is a good possibility for a return with these companies and the risk is moderate.
International Business Machines and MAC had ratings of 9 out of 10 and 8 out of 10. These ratings are based on a mathematic system that determines the best stocks to invest in with the greatest return and

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