in11 - Chapter 13: Investment Fundamentals and Portfolio...

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Chapter 13: Investment Fundamentals and Portfolio Management
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Objectives Summarize reasons why people invest, what is required before beginning, how returns are earned, and some ways to obtain funds to invest. Determine your own investment philosophy. Recognize the variety of investments available. Identify the major factors that affect the return on investment. Specify some strategies of portfolio management for long-term investors. List three guidelines to use when deciding the best time to sell investments.
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Establishing Investment Goals Financial goals should be specific and measurable. Why are you accumulating these funds? How much do you need? How will you get it? How long will it take you to reach your goal? How much risk are you willing to assume? Are you willing to sacrifice current consumption to invest for the future? Is it realistic to try and save this amount?
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Step 1 My investment goals are: ____________________ ____________________ Step 2 By ___________, I will have obtained $_______. Step 3 I have $__________ available to invest. Date _____________ Step 4 Possible investment alternatives: 1._________________ 2._________________ 3._________________ 4._________________ Step 5 Risk factors for each alternative 1.____________________ 2.____________________ 3.____________________ 4.____________________ Step 6 Projected return on each alternative 1.__________ 2.__________ 3.__________ 4.__________ Step 7 Investment decision 1._______________ 2._______________ 3._______________ Step 8
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This note was uploaded on 02/11/2011 for the course FIN 3403 taught by Professor Tapley during the Spring '06 term at University of Florida.

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in11 - Chapter 13: Investment Fundamentals and Portfolio...

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