Write a six to eight (6-8) page paper in which you: 1. Explain w...

  1. Home
  2. Homework Library
  3. Business
  4. Finance
  5. Write a six to eight (6-8) page paper in which you: 1. Explain w...

QuestionQuestion

Write a six to eight (6-8) page paper in which you:

1. Explain why investors may be attracted to high-risk investments such as exchange-traded derivatives, global funds, and other complex investment vehicles.

2. Analyze the risk associated with exchange-traded derivatives, such as futures and options, and what brokers might do to minimize the risk to investors.

3. Discuss the challenges related to regulating a complex global financial firm and make suggestions for regulatory improvements.

4. Analyze the ethical violations of the company you researched.

5. Discuss the consequences that you believe to be appropriate for the senior management of the firm you researched and the implications for brokers trading in high-risk investments.

6. Create a scenario where you believe the use of high-risk investments would be beneficial for the investor. Provide support for your rationale.

7. Use four (4) external resources to support your work.

• Your assignment must be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; references must follow APA

Solution PreviewSolution Preview

These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.

High Risk Investing

1. Why investors may be attracted to high-risk investments such as exchange-traded derivatives, global funds, and other complex investment vehicles
High-risk investments offer the promise of high returns, and this is the primary reason why some investors find them attractive. The possibility of a significant increase in the prices of such high-risk investments in the future makes them appealing to investors who are not risk averse (Aren & Aydemir, 2015). This is because an investor can sell the investments in the future, and make a bigger profit than they would have made had they invested in low-risk investments. Additionally, an investor may prefer such investments because they can bid their time before selling, thus adverse volatility will be offset as the asset gains value with time.
The personality of an investor is another factor that determines whether or not they find high-risk investments attractive (Aren & Aydemir, 2015). In this regard, investors can be divided into two categories namely: risk-takers and risk-avoiders. Risk-takers tend to be more aggressive in their investment approach compared to risk-avoiders who tend to be more cautious. Consequently, risk-takers have high risk tolerance and they derive satisfaction from taking high risks in exchange for the promise of high rewards. This category of investors may be attracted to high-risk investments due to the excitement of getting high returns compared to risk-avoiders who desire to safeguard their investment (Aren & Aydemir, 2015).
Risk tolerance among investors differs, and based on these differences some investors may be attracted to high risk investments more than others. Determinants of risk tolerance include: investment timeframe, risk...

By purchasing this solution you'll be able to access the following files:
Solution.docx.

50% discount

Hours
Minutes
Seconds
$105.00 $52.50
for this solution

PayPal, G Pay, ApplePay, Amazon Pay, and all major credit cards accepted.

Find A Tutor

View available Finance Tutors

Get College Homework Help.

Are you sure you don't want to upload any files?

Fast tutor response requires as much info as possible.

Decision:
Upload a file
Continue without uploading

SUBMIT YOUR HOMEWORK
We couldn't find that subject.
Please select the best match from the list below.

We'll send you an email right away. If it's not in your inbox, check your spam folder.

  • 1
  • 2
  • 3
Live Chats