Topic
Variation in Your Investments
Instructions
Your Comfort Level and Your Choices?
Some people want to invest in a bank account since there is no variation in value but the interest rate is almost nothing. Others like bond funds for they seem to pay a steady amount and the prices have enjoyed unusual stability. The stock market typically averages ten percent returns but you have to live with volatility. If you enter in data from your mutual funds, you can do a descriptive statistic analysis and look at the variation in each fund option by looking at the coefficient of variation.
Write a 200-word discussion post on variation in your investments.
Answer preview
I like currencies and investing in the foreign exchange. Despite the high risk involved, I find the forex market more lucrative than for instance, the stock market or investing in government securities, and easy especially with the advent of online exchanges. Furthermore, it is not possible for any one individual, institution, or country to manipulate the currency exchange rate substantially. This is not to say that governments do not have any control over their currencies. Countries can use monetary policy tools like controlling interest rates to affect the exchange rate.
Word count: 208