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Risk Assessment

In: Business and Management

Submitted By cooperxxl
Words 438
Pages 2
Solving the Questions
Risk Assessment
And
Portfolio Management
Mehmet F. Celik
Dr. Bliss: Corporate Investment Analysis, Fin 550
Strayer University

1.
|Investment Category |Rate of Return |Rate of Inflation |Real Rate of Return |
| | | |(Rate of Return - Rate of inflation) |
|U.S. Government T-Bills |3.5% |2.9% |0.6 % |
|Large-cap Common Stocks |12.1% |2.9% |9.2% |
|Long-term Corporate Bonds |6.2% |2.9% |3.3% |
|Long-term Government Bonds |5.6% |2.9% |2.7% |
|Small -capitalization Common Stock |14.6% |2.9% |11.7% |

In terms of Real Rate of Return Small – cap Common Stocks still have the best value that it seems to us. However, if inflation continues to go up, I would prefer Large-cap Common Stocks instead of Small-cap Common Stocks.

2.
|Month |Nike | |JNJ |
|1 |-5,00% | |8,00% |
|2 |3,00%...

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