From the e-Activity Part 1, explain the financial investment with the highest and lowest risks available in the marketplace and indicate how you draw your conclusions related to risk level.
Assess the factors that should be considered when evaluating financial risk and suggest which factor is the most influential when establishing investment risk level. Provide a rationale for your answer.
From the e-Activity Part 2, assess the factors that contributed to the financial difficulties, how these difficulties were concealed by the company, the resulting impact to investors, and how knowledge of this history should impact decisions made by future investors.
As a result of the financial crisis in 2008, new legislation was passed and regulatory requirements placed on financial institutions. Assess the effectiveness of regulatory requirements as a means to reducing investment risk, suggesting alternative solutions to regulation. Provide support for your conclusion.
Directions:
Search the Web for current investments being offered to the public.
Search the Web for financial institutions and investment banks that have encountered financial difficulties or declared bankruptcy.
