Let's say you take this guy's advice and decide to invest in a single stock. Your...
Let's say you take this guy's advice and decide to invest in a single stock. Your rich uncle we mentioned in week 1 left you $50,000 and you decide that you can make a intermediate term investment (3-5 years) in a single stock. What stock would you choose and why? Be very specific and include things such as the previous rate of return in your decision making.
Homework Answers
It can be mentioned that because $50,000 is a bit large amount which should be used for some productive purpose in the future and the time period is medium term , as a risk averse investor, I would make sure that I invest in a less risk fund as I'm not looking for much return. For this the stock I would choose is a large company or a Big Cap company with relatively less standard deviation and for instance Walmart would perfectly serve this purpose where the return is around 15% and the stock is also not riskier.
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