Safe investment Risky investment

1. "Safe" Vs. "Risky" Investments
Choice depends on:
 Financial goals
 Investment preferences
 Risk tolerance

2. CDs Investment
 Type: “Safe”
 Financial goals: Low Return expected
 Investment preferences: Invest with principal
guarantee
 Risk tolerance: Low

3. Bond Investment
 Type: “Safe”
 Financial goals: Low Return expected
 Investment preferences: Invest in other companies
or government
 Risk tolerance: Low

4. Stock Investment
 Type: Risky
 Financial goals: High Return expected
 Investment preferences: Invest in other companies
 Risk tolerance: Medium to high

5. Derivative Investment
 Type: Risky
 Financial goals: High Return expected
 Investment preferences: Invest in uncertainties such
as interest rates, stock prices, commodity prices,
foreign currencies, weather, etc
 Risk tolerance: High