Part I: Investing Behavior:

There are three sections to this assignment, each should have its
own heading in your essay:
Begin this lesson by completing the interactive investor profile questionnaire
at Investment Risk Tolerance Assessment (I would be considered a below
average tolerance for risk)
. According to this instrument, explain what kinds of investments should
you consider. Also include a profile for yourself as an investor. Make sure
you analyze and discuss the various types of investors and where you fit in.
What else can you find out about investing behavior–for example, does your
profile change over time as you age or does it remain the same? How would
your profile assist you and your financial advisor or investment advisor in
planning your portfolio?
Part II: Recognizing Fraud
What is a pyramid scheme and what is a Multi-Level Marketing plan
(MLM)? How do they differ, if at all? See if you can find online information
regarding an illegal pyramid schemes and a legal MLM scheme. How can you
recognize an MLM if you are approached to get involved with one? Have you
ever participated in or invested in either an MLM or an illegal pyramid
scheme? Why are fraudulent pyramid schemes naturally unsustainable? Who
are the victims? Provide a diagram illustrating the dynamics of pyramid
schemes.
Part III: Famous Scandals
What is a Ponzi Scheme and how do you recognize one? Next, survey the
Web site of a 2009 60 Minutes CBS broadcast on the Madoff affair, which
includes articles, video, and links in this YouTube Video, ‘The Man Who Knew’
https://www.youtube.com/watch?v=s68FR1MXT8Q. According to this site,
who discovered the Madoff fraud and then discuss how he discovered it?
Who were Madoff’s victims and what were some common elements among
the individuals who participated in this scheme? Next, visit the support
group Web site http://berniemadoffponzisupportgroup.blogspot.com/
created for the victims and report on what you found interesting. In the CBS
video, how did Madoff defend himself? Read a Read a Journal article that
explains how Madoff’s Ponzi
https://en.wikipedia.org/wiki/Madoff_investment_scandal scheme was
able to succeed. How did biases in regulatory oversight contribute to the
fraud? Sample some of the videos of the congressional hearings on the
Madoff scandal https://www.youtube.com/watch?v=FOKSkaQoF_I . Why did
representatives and senators eventually focus their criticism on the
Securities and Exchange Commission?
Use the template provided. Follow APA7 format, including a title page,
introduction, conclusion, citations, and a minimum of three references
(not Wikipedia or Investopedia). See the attached PPT file. Your final
project should be a minimum 5 pages in length, excluding the title
and reference pages.