Describe how risk-return relationships, risk tolerance, and asset diversification and allocation relate to the fundamentals of investments.

Lecretia Washington works hard for her money, and she knows she needs to start saving toward big goals, such as buying a new car, taking a vacation, buying a house, and, eventually, retirement. But it seems as if there is never enough money to set aside after paying her daily and monthly expenses. How can she begin to save toward achieving her long-term goals?

Discuss the process of initial public offerings, compare the various types of stocks, and explain how stocks are bought and sold and the factors that affect stock prices.

Gina has accumulated more than $10,000 in her savings account, and is thinking of investing the money in the stock market. She doesn’t know where to start. What kind of information should she look at to determine what are good investments for her?

Explain how companies issue bonds, list the different types of bonds, and describe how bond risk is evaluated.

Dennis Sanchez is starting to think about retirement. He’s interested in making some low-risk investments that will also generate income. Dennis believes investing in bonds might be his best option. What type of bonds should he investigate?

Describe the different types of mutual fund investments and other investment opportunities besides stocks, bonds, and mutual funds.

Keri and Alex Young recently got married and want to start investing in their future immediately. After their wedding, honeymoon, and moving expenses, they have only about $3,000 to invest. Would mutual funds be a good place for them to begin investing?