Here is the synopsis of our sample research paper on THE IMPORTANCE OF INVESTMENT RISK DURING AN INVRESTMENT PERIOD. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 5-page paper discusses whether investors should measure the probability of risk when considering the final amount of a given investment upon maturation or if risk probability should also be measured during the actual investment period. Bibliography lists 6 sources.
Page Count:
5 pages (~225 words per page)
File: D0_MTinvris.rtf
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Unformatted sample text from the term paper:
performance has been positive, the client wants to increase rates of return on future investments. The best way to approach this
issue is to determine the level of risk the client is willing to assume. You can do this in one of two ways. First, talk to him. If he is
an accredited investor, he will have a specific amount of risk in mind he is willing to undertake in order to make a healthy return. Then you can become more
specific by asking him a series of questions pertaining to investment risk. The questions can and should include the following:
If an investment doubles in price one month after you bought it, yet you had originally planned to hold it for the long
term, would you sell it immediately, buy more of it or hold it in the event it goes higher? (Microsoft Corporation, 2003)?
If the opposite happens and the investment falls 15 percent because of a market correction, how would you react (Microsoft Corporation, 2003)?
Both of these questions gauge an investors reaction to a fluctuating market. If his immediate response to an increase in an investment is to immediately get rid of
it, hes wanting a very quick return on his investment. But if the investment falls 15 percent, this same person will likely not have the patience to wait and see
if it will go back up. Instead, hell likely want to find another high-yield investment. Then there are questions that ask "hypotheticals."
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