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University of North Dakota Personal Investment Policy Statement Questions

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  1. Visit the Chicago Mercantile Exchange website www.cmegroup.com. What are some examples of commodities that are part of this exchange and could be included in your future investment portfolio?
  2. What would be the advantages to having a personal investment policy statement? Write a model investment policy statement for yourself as a guide for future investing. Focus on the parts mentioned in the chapter: 1) return objectives and risk preferences & 2) constraints on the investment.
  3. Is socially responsible investing important to you? Why or why not?
  4. What are the 5 types of investment risk discussed in the chapter? Provide an example of each type of risk.
  5. Assume you have $12,000 invested in a mutual fund. In two years, the fund grew to a balance of $12,800. You made no additional contributions or withdrawals from the fund. What is your annual rate of return? Use the following calculator http://www.moneychimp.com/features/portfolio_performance_calculator.htm How would you feel about this return if this was your portfolio?
  6. Read the article “10 Tips for Successful Investing” https://financialhighway.com/successful-investing-10-tips-for-successful-investing/ Which tips do you feel would be most important for yourself?
  7. Visit the Yahoo Finance website finance.yahoo.com and look of the stock price for a company you are familiar with. What is the stock currently trading for? Would you consider investing in this company, why or why not?

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