Web Exercises

  1. 16-19 Financial Blogs

    The List (p. 000) includes 10 blogs that offer good financial information for young adults. Visit three of these blogs and find one article or piece of content on each that seems relevant to your current financial situation. Summarize the content of the article and discuss how it is meaningful to you.

  2. 16-20 Getting the Most for Your Savings

    At this stage in your life, putting your money in a savings account may be the most you can do. Savings rates are at historically low levels, so it is even more important that you find the most advantageous interest rate for your savings account. Go to Bankrate.com, where you can search and compare interest rates on checking and savings accounts in your local area and nationally. What is the best rate you can find in your local area? How does that compare to nationally available rates?

  3. 16-21 Dogs of the Dow

    Several investment strategies help investors select stocks. Dogs of the Dow is one of the most publicized strategies. Research this strategy and discuss whether it be a good investment strategy for you.

  4. 16-22 Dollar Cost Averaging

    It is difficult to perfectly time your investments so that you purchase when a stock is at its lowest point or sell when a stock is at its highest point. Research the investment strategy of dollar cost averaging. In a paragraph, describe what this strategy is, why it is used, and the advantages and disadvantages it has over other investment strategies.

  5. 16-23 Municipal Bonds: Paving Roads and Building Schools

    Municipal bonds are issued by local and state governments and other municipal organizations, such as school districts and toll road authorities. Conduct online research to determine the municipal bonds that the state in which you live has issued. Research two of these municipal bond projects. What is the purpose behind each bond issue?

MyBizLab

Go to the Assignments section of your MyBizLab to complete these writing exercises.

  1. 16-24 Describe your risk tolerance. What factors contribute to your tolerance level? Given your risk tolerance, what kinds of investments would be suitable for you right now? What factors may contribute to a change in your risk tolerance?

  2. 16-25 Mutual funds often compare their performance to that of the S&P 500 with the goal of “beating” it. Is this a fair comparison? Why or why not?

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