1.When an investor is deciding whether to hold long term or short term securities in their portfolio, would their age and retirement goals be a factor in the decision to purchase short or long term securities? How relevant is the yield to maturity and beta to whether a security should be purchased?

 

2.When investors purchase short term securities to avoid higher interest rates, besides interest rate risk, what are some of the other risk they face? If an investor purchases Treasury Bills or Bonds, that are considered risk-free is there any chance the government may default on these securities?

3.If an investor purchases long term securities because of decreasing interest rates is the time value of money and present value a factor in deciding which securities to invest in?

 

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    FIN/571 Discussion
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