Presentation on theme: "Introduction to Investments"— Presentation transcript:
1Introduction to Investments Fall 2013, BUS-123Introduction to InvestmentsFrank Paiano – “Paco”Professor, Business, Professional & Technical StudiesWelcome, Everyone!
2First – A Perspective“It is a gloomy moment in history. Never has the future seemed so dark and incalculable. The United States is beset with racial, industrial and commercial chaos, drifting we know not where. Of our troubles, no one can see the end.”Harper’s Magazine, 1847
3CHAPTERS 1, 3, Lecture Notes A Brief History of Risk and Return (Chapter 1)Security Types (Chapter 3)Time Horizon & Short-term Investments (Lecture)What I have tried to do here is create what I believe should be the contents of the first chapter of an Introduction to Investments textbook.“In investing money, the amount of interest you want should depend upon on whether you want to eat well or sleep well”-- J. Kenfield Morley
4What is an Investment?An investment is any vehicle into which resources can be placed with the expectation that it will generate positive income, or that its value will be preserved or increased, or bothInvestment returns (a.k.a. investment rewards)Income – interest, dividends, renta.k.a. cash flowsIncreased value / Decreased valuea.k.a. capital gains, capital appreciation (Yippee!)a.k.a. capital losses (Boo! Hiss!)Investments come in all shapes, flavors and sizes
5Types of Investments Securities Property Personal Investments that represent debt or ownership or the legal right to acquire or sell an ownership interest(a.k.a. financial investments)PropertyReal property (land, buildings) and personal property (precious metals, autos, art, collectibles, etc.)(a.k.a. real estate, hard assets, tangible assets, commodities)PersonalExamples: Education and Training, TravelCollege is often the best investment a person will ever make – Why?This class concentrates on securities
6Types of Investments Primary Assets Derivative Assets Debt Equity (continued)Primary AssetsDebtFunds lent in exchange for interest income and the promised repayment of the loan at a given future dateExamples: Bonds, Short-term investments (savings accts, etc.)EquityOwnership in a business or a propertyExamples: Stocks (corporations), Partnerships, Sole Proprietorships, Real Estate, Real Estate Investment TrustsDerivative AssetsSecurities that derive their value from an underlying security or asset – normally highly speculativeExamples: Options, FuturesSome in the industry do not classify derivatives as investments
7Types of Investments Direct Investments Indirect Investments (continued)Direct InvestmentsYour name is on the investment and you control the investment – can buy or sell as you wishExamples: Real Estate, Stocks, BondsIndirect InvestmentsSomeone else is in control of the investmentYou have limited control, or more likely, no control over the underlying investmentExamples: Mutual Funds, REIT, Limited Partnership**You can buy or sell your shares in the mutual fund, REIT, or limited partnership, but you do not control the underlying investments
8Global = Domestic and International Types of Investments(continued)Domestic InvestmentsBased inside the United StatesInternational Investments (a.k.a. Foreign)Based outside the United StatesBe careful of this subtle distinctionInternational (a.k.a. Foreign) ≠ GlobalGlobal = Domestic and International“The world is a very small place these days economically.”Sixty-five percent (by value) of the parts in the Ford Mustang come from the U.S. and Canada. Ninety percent of the parts in the Toyota Sienna – which is built in Indiana – come from the U.S. and Canada. Which is the more American car? (Forbes)
9Types of Investments Budweiser Shell Oil Ben & Jerry’s Farmers Ins Domestic or Foreign?(continued)BudweiserShell OilBen & Jerry’sFarmers InsArcoGerberCarnationCup-a-SoupForeignFox NetworkSeagram’sBayer AspirinVaselineFriskiesMotel 6Union BankVolvo & SaabForeignForeignForeignForeignForeignForeignForeignForeignForeignForeignForeignForeignForeignForeignDomesticForeignDomestic or Foreign?
10Types of Investments Global Investing (continued)Top 18 countries according to per capita income(alphabetical order)Which country had the best average annual return over the past quarter century?Average annual return from 1973 to 2009The return of the stock markets in the developed world has been 9.2%.
11These are general guidelines used throughout the industry Types of Investments(continued)Short-term InvestmentsUp to a 1 yearIntermediate-term Investments2 to 5 yearsLong-term Investments5 or more yearsThese are general guidelines used throughout the industryI disagree with the general guidelines. Here are mine:Short-term – 1 to 2 yearsIntermediate – 3 to 5, maybe even 6 or even 7 yearsLong-term – 7 years or longer (10 to 30 years)Before you make an investment, you must know your time horizon!
12Types of Investments Liquid Investments Illiquid Investments (continued)Liquid InvestmentsEasily and quickly converted into cashThere is a ready market to purchase the investment and change of ownership happens quicklyExamples: Stocks, Bonds, Mutual Funds, REITsIlliquid InvestmentsMay be difficult to convert into cashMarket for investment is small or change of ownership happens slowly or bothExamples: Real Estate, Partnerships, Collectibles
13Risk & the Risk/Return Spectrum Risk is the chance that actual investment returns will differ from the expected returnsWhat is the typical definition of risk?“The possibility of suffering harm or loss; danger”In general, the higher the expectation of investment returns, the higher the risk levelThe Risk / Return SpectrumLow-risk – 3% to 5%Moderate-risk – 5% to 8%High-risk – 8% to 12%Speculative-risk – Greater than 12%Speculation is often not considered investing(I certainly do not consider it investing…)These are my guidelines
14Let’s Try Some Examples… What type of investment is…Bank of America passbook savings accountNestlé Foods, Inc.Southwestern College Propositions AA & R BondsDuplex in Spring Valley (rent one, live in other)Qualcomm CorporationLoan to Uncle HarryShort, Inter, or Long Term?Low, Moderate, or High Risk?Security or Property?DebtorEquity?Director Indirect?Domestic or Foreign?LiquidorIlliquid?
15Measuring Investment Return Return is straight-forward to measureTotal Dollar ReturnThe return on an investment measured in dollars that accounts for all cash flows and capital gains or lossesTotal Percent ReturnThe return on an investment measured as a percentage that accounts for all cash flows and capital gains or lossesMeasures of return allow us to compare investment alternatives
16Measuring Investment Risk Risk is difficult to measureThere are many ways, all of them are imperfectOne popular measure is standard deviationStandard DeviationMeasures the volatility of an investmentIn any given year, there is about a ⅔ chance that the return of an investment will be within one standard deviation of the historical average return (average return plus or minus one standard deviation)The higher the standard deviation, the more volatile the investmentThe greater the variance from the normWe will investigate standard deviation in detail later in this chapter
17Investments Overview Equity Securities – a.k.a. Common Stocks Fixed-Income Securities – a.k.a. BondsShort-term Investments – a.k.a. “Cash”Mutual Funds – a.k.a. Investment CompaniesHybrid Securities – Preferred Stocks, Convertible SecuritiesOthers – Real Estate, Physical AssetsDerivatives – Options, FuturesLet us look at each in more detail
18Investments Overview Equity Securities – a.k.a. Common Stocks Chapters 5 through 8, 17(continued)Equity Securities – a.k.a. Common StocksRepresents ownership in a corporationInvestors receive…Dividends – optional payments to shareholdersCapital Gains – shares increase in valueLimited LiabilityModerate-risk to high-risk to speculative-risk“Volatility” – euphemism for “I lost a whole lotta’ money!”Historically best returns over time8% to 12% (I normally tell people 8% to 10%)Should be considered a long-term investment2008 Definition: “Stocks are equity investment instruments designed to lose value.”
19Investments Overview Fixed-Income Securities – a.k.a. Bonds Chapters 9 & 10, 18 through 20(continued)Fixed-Income Securities – a.k.a. BondsLong-term loans toCorporations (Corporate bonds)State and local governments (Municipal bonds)Federal government (Treasury bonds)Bond investors lend their money to the bond issuers (corporation, state or local municipality, Treasury)The bond investors then receive interest and a promise that the loan will be repaid when dueHistorically much less riskier than stocks but…Also less reward – 4-6% (govt/mun) to 6-8% (corp)Good intermediate-term / long-term investment2008 Definition: “Bonds are fixed-rate investment instruments designed to lose value.”
20Investments Overview Short-term Investments Lecture Notes, Chapters 3, 19(continued)Short-term Investmentsa.k.a. “Cash” “Short-term vehicles”Normally up to 1 year (1 to 3 years)Usually guaranteed (or pretty darned close)Liquid (many let you simply write a check!)Very low risk of losing principalHence, very low reward2% to 5% over time (currently less than 1%)“A place to park your money”Also used for holding an “emergency fund”2008 Definition: “Short-term investments are instruments designed to accept what remains of investors’ money after they have given up on stocks and bonds.”
21Investments Overview Short-term Investments – Examples Lecture Notes, Chapters 3, 19(continued)Short-term Investments – ExamplesDeposit accounts at financial institutionsPassbook savings accounts at banks, share accounts at credit unionsSeries EE or I savings bondsU.S. Treasury bills (T-bills)Certificates of Deposit (CDs)Money market accountsMoney market mutual fundsCommercial paper (Corporate IOUs)Banker’s acceptance notes (Bank IOUs)More about short-term investments later in this presentation…
22Investments Overview Mutual Funds a.k.a. Investment companies Chapter 4(continued)Mutual Fundsa.k.a. Investment companiesA company that pools investors’ money and invests in a diversified portfolio of securitiesInvestors get…DiversificationMutual fund can purchase hundreds of securitiesProfessional money managementVery popular form of investmentRange from low-risk to speculative-risk2008 Definition: “Yeah, them too.”
23Investments Overview STOCKS BONDS “CASH” Professional Money Management (continued)STOCKS BONDS “CASH”Balanced mutual fundsStock mutual fundsBond mutual fundsMoney market mutual fundsa “mutual” funda.k.a. investment companyProfessional Money ManagementDiversificationApproximately 50% of American households own mutual funds.Or used to …
24Investments Overview Hybrid Investments Preferred Stock Chapters 3 and 18(continued)Hybrid InvestmentsPreferred StockRepresents ownership in corporation, but…Dividends are not considered optionalConvertible SecuritiesA bond or preferred stock that can be converted into common stockHybrid investments are designed to offer the stability of fixed-income investments (bonds) with the opportunity for capital growth of equity investments (stocks)Some in the industry categorize these with stocks, some categorize them with bonds
25Investments Overview Other Popular Investment Vehicles Real estate Lecture Notes(continued)Other Popular Investment VehiclesReal estateExamples: residential, commercial, raw land, Real Estate Investment Trusts (REITs)Tangible assetsExamples: precious metals, jewels, art, collectiblesTax-advantaged investmentsExamples: oil and gas limited partnerships, low-income housing projectsIf there is sufficient time and interest, we will look at some or all of these, especially real estate and tangible assets. By the way, none of these were spared in 2008, either.
26Investments (???) Overview Chapters 14 and 15(continued)Derivative AssetsSpeculative securities that derive their value from an underlying security or assetOptions – a.k.a. Options ContractsCalls and putsFutures – a.k.a. Futures ContractsCommoditiesStock indexesMany in the financial world (myself included) do not categorize these as investmentsThe derivative speculators did not feel so all alone in 2008.Usually, they are the only ones who are proud to have only lost 30%.
27Our Emphases in this Course Equities – a.k.a. StocksYou are an ownerFixed-Income Securities – a.k.a. BondsYou are a loanerShort-term Securities – a.k.a. “Cash”Your principal is safe (often guaranteed)Mutual Funds – a.k.a. Investment CompaniesYour investments are managed on your behalfFor the vast majority of investors, these are the most popular and most important financial investment options
28Investments: What are ___? Investment companies that pool investors' money and invest in a diversified portfolio of securities. Investors get diversification and professional money management.short-term securitiescommon stocksbondsmutual fundsThe correct answer is (D). Investment company is the legal term; mutual fund is the popular term.
29Investments: What are ___? Represent ownership in a corporation. Investors receive dividends and capital gains (or capital losses).hybrid securitiescommon stocksbondsshort-term securitiesThe correct answer is (B). When people use the term “stocks,” they are talking about common stocks.
30Investments: What are ___? Investments with very little risk, and correspondingly, very little return. Often used as a place to "park your money" or for an emergency fund of 3 to 6 months income.hybrid securitiescommon stocksbondsshort-term securitiesThe correct answer is (D). Low risk, low return.
31Investments: What are ___? Fixed-income securities that represent loans to corporations, municipalities (state & local governments & agencies), and the Federal government. Investors receive interest and a promise to repay the loan.hybrid securitiescommon stocksbondsshort-term securitiesThe correct answer is (C). Bonds are “fixed-income” investments.
32Investments: What are ___? Securities designed to offer the stability of fixed-income investments with the opportunity for capital growth of equity investments. Examples include preferred stock and convertible bonds.derivativescommon stocksbondshybrid securitiesThe correct answer is (D). The best (?) of both worlds.
33Investments: What are ___? Speculative securities that derive their value from an underlying security or asset. Examples include options contracts and futures contracts.derivativeshybrid securitiesbondsshort-term securitiesThe correct answer is (A). You can make a lot of money; you can lose a lot of money.
34What are Reasonable Expectations? What are reasonable long-term expectations of returns from the following investments?stocksbondsshort-term securitiesmutual fundshybrid securitiesderivatives8% - 12%(Better to say 8%-10%)4% - 8%2% - 5%??-?Now, let us look at investment returns and risks in detail…
35Investment Return – Revisited Over the long term, equities (stocks) have produced the best returnsEquities – Stocks8% to 12% (I usually tell people 8% to 10%)Fixed-income Securities – BondsTreasury & Municipal Bonds – 4% to 6%Corporate Bonds – 6% to 8%Short-term Investments – “Cash”2% to 5%Mutual funds will more or less (often less) reflect the underlying assets that they invest in
38Investment Risk – Revisited It is no accident that stocks and bonds have produced better returns than short-term investments (a.k.a. “cash”)Otherwise, why would investors assume the higher risks of stocks and bonds? Why wouldn’t they just assume the…Risk-free Rate of ReturnThe return on guaranteed short-term investmentsSpecifically, the return on U. S. Treasury BillsRisk PremiumThe reward for bearing risk; the extra return on a risky asset over the risk-free rate of return
40Investment Risk – Revisited (continued)Risk versus Reward; Risk versus ReturnInvestment return is very straight-forwardHow much did you start with and how much did you end with? That is your return!But measuring how much risk you took to receive that return is much more difficultEach year, the investment community measures the average annual return and the amount of variance from the average returnUsing statistics, the resulting measures of risk are called variance and standard deviation
41Investment Risk – Revisited (continued)Variance and Standard DeviationWe will leave the calculations for your statistics classSuffice to say the higher the variance and standard deviation, the riskier the investmenti.e. The higher the variance and standard deviation, the more the investment return will deviate from the average annual return????????????These are just fancy, schmancy terms for, “You Can Lose Yer Money!”
42Distribution of Annual Returns on Common Stocks: 1926 to 2012 Does this distribution resemble anything you are familiar with?
43The Normal Distribution – The “Bell curve” Investment returns over time tend to mirror a normal distribution
44Historical Returns, Standard Deviations, and Frequency Distributions: 1926-2009 The greater the standard deviation, the wider the distribution of returns and the riskier the investment
45Another View of Risk versus Return Average Annual Return versus Annual Return Standard Deviation
46A Global View of Risk versus Return Now we can complete the global picture regarding risk versus return.Who had the best risk-adjusted return?Sweden may have had the best average annual return, but you had to accept almost 60% more risk to get that return.The standard deviation of the developing world was 15.2% with a 9.2% average annual return.
47So, Does You’se Got’s It Yet? You’se Wants High Returns?You’se Gonna’ Gets High Risk!You’se Gonna’ Lose Some Money, Maybe All’s Yer Money!If’n Anybodies Tells You’se Different,De’re Lying!So when (not if) you see an advertisement for a “12% Safe Rate of Return,” you will know that the chances of losing your money are pretty high. When you see claims such as 300% or even 3000% (and you will if you are involved in investing for any length of time), sit on your hands and grab your wallet!P.S. By the way, they are also breaking the law.Examples: Wade Cook, WizeTrade, Day Trading Coach, Optionetics, etc.
48But Isn’t Somebody Doing It? Yes, it is trueSome people make tremendous rates of returnBut those people are not InvestorsThey are Traders (a.k.a. Speculators)Being a Trader can be very profitableBut it is also very stressful and very perilousAnd you are up against the best in the worldStory: John Gutfreund versus John MeriweatherJohn Bogle:
49So What is a Realistic Rate of Return For Me? After you have taken this course, you will have a strong knowledge of the most popular types of investmentsStocks, Bonds, “Cash,” Mutual Funds, etc.You will also know what levels of returns and what levels of risks you should reasonably expect to receiveAnd if you are a patient, long-term investor, I believe it is realistic to expect 8% to 10%I am certainly working on it myself!Of course, as we will reiterate time and time again, there are no guarantees!
50But Is 9% or 10% Good Enough?It turns out the answer to this question is, “YES!”If you start early …If you are patient and consistent …If you do not get cocky or greedy …If you do not chase after every “Next Big Thing” that comes along …And most importantly, you don’t PANIC when the market swoons!As it inevitably will do from time to timeThe trick is to take advantage of the Time Value of Moneya.k.a. Compound Annual Return
51The Time Value of MoneyThe amount to which a sum you invest now will increase based on a specified rate of return and time periodCalculating amounts into the future is called compounding – a.k.a. the future value of moneyFuture value can be computed for a single amount – a.k.a. a lump sum or principalFuture value can also be determined for a series of deposits – a.k.a. stream of investments, “annuity”We will also learn how to move from the future back to the present (a.k.a. discounting, the present value of money) when we learn how to assign valuations to stocks and bonds
52The Time Value of Money Let us do some future value exercises… (continued)Let us do some future value exercises…One last comment on risk versus return
53Psst! Here is One of Paiano’s Secret Tips… Avoid Large Losses! Where would you put $100?Year 1 Year 2Investment A 85% -50%Investment B 10% 9%$185$110$92.50$120Now, before we embark on the process of identifying and familiarizing ourselves with the longer-term, higher-yielding investments, let us learn how and where to “park our money” using short-term investments.
54Uh, Wait a Sec. One More Time… The greater the variance and standard deviation of the average annual returns of an investment, ______________.the greater the risk (a.k.a. the more volatile)the lesser the risk (a.k.a. the less volatile)there is no correlation (a.k.a. no relationship)standard what? (I always hated statistics…)The correct answer is (A). Don’t you dare get this one wrong on the exam!
55Short-term Investments Reviewa.k.a. “Cash” “Short-term vehicles”Normally up to 1 year (1 to 3 years)Usually guaranteed (or pretty darn close)LiquidVery low risk of losing principal…Hence, very low reward2% to 5% over timeCurrently close to zeroSome are paying zero!“A place to park your money”Also used for holding an “emergency fund”
56Interest on Short-term Investments Stated rate of interestMost common form of interestExample: Nominal rate on a savings accountDiscount basisMethod of earning interest on a security by purchasing it at a price below its redemption value; the difference is the interest earnedThe interest “accrues” on the investmentTreasury bills, corporate paperExample: Purchase a security now for $4,800 that will be redeemed for $5,000 in nine months. Interest would be $200.
57Risks of Short-term Investments Risk of default (a.k.a. capital losses)None or almost noneYour principal is safe, often guaranteedRisk of losing purchasing powerHigh! Short-term investments barely keep up with inflationRisk of lost opportunity costHigh! Unless your time horizon is very short, there are several investment alternatives, almost all of which will give you a better rate of returnRepeat after me: “There is no such thing as a risk-free investment.”
58Types of Short-term Investments Deposit accountsPassbook savings accountShare account at credit unionsNegotiable Order of Withdrawal (NOW) accountChecking accounts that pay interestMoney Market Deposit Account (MMDA)Limited check writing privilegesDeposit accounts are offered by banks and credit unions. They are often called demand accounts since the funds are available upon demand. They provide the highest level of liquidity and are usually guaranteed up to $250,000 by the government or a government agency.
59Types of Short-term Investments (continued)Series EE Savings BondsDiscount method of paymenta.k.a. Accrual-type securityExample: $100 bond cost $50Do not pay income tax on interest until redeemedFree from state and local income taxesFree from federal income taxes if used for higher educationPopular gift for newborns
60Types of Short-term Investments (continued)Series HH Savings BondsIssued at face value and pay interest twice a yearBeing phased out – can no longer purchaseSeries I Savings BondsAlso issued at face valueInflation indexed!Guaranteed to outpace inflation (but not by much)Pay accrued interest at bond’s maturity of 30 yearsAgain, free from taxes if used for higher educationMaximum purchase of $30,000 per yearThe Series I bonds are becoming more popular with those concerned about inflation
61Types of Short-term Investments (continued)Treasury BillsObligations of the United States TreasurySold at a discount, redeemed at face valueVarying short-term maturitiesTypically one-, three- and six-month maturitiesGenerally regarded as the safest of all investments – a.k.a. “risk-free return”Used as the benchmark for all other investmentsFree from state and local income taxCan be purchased directly from the Treasury
62Types of Short-term Investments (continued)Certificates of Deposit (a.k.a. CDs)Savings instruments in which funds must remain on deposit for a specified periodPeriods range from 7 days to several yearsPenalty for early withdrawalInsured to same $250,000 per investorBrokered CDsSold by brokerage firms; normally offer higher yieldsCan be sold prior to maturity without incurring a penaltyCareful! CDs will usually rollover automatically if you do not redeem them. You can specify that your CD proceeds be automatically rolled into your checking or savings account.
63Types of Short-term Investments (continued)Commercial PaperShort-term, unsecured promissory notes (IOUs) issued by corporations with very high credit standings90-day, 180-day and 270-day maturitiesMaximum maturity is 270 daysBy keeping the maturity less than one year, commercial paper does not need to be registered with the Securities and Exchange CommissionUsually sold in multiples of $100,000Hence, commercial paper is usually purchased by institutional investors (exp: money market mutual funds)
64Types of Short-term Investments (continued)Banker’s Acceptance NotesShort-term, low-risk investment vehicles arising from bank guarantees of business transactionsSold at a discount from their face value and generally provide yields slightly below those of CDs and commercial paperTypically 30-day to 90-day maturitiesAs with commercial paper, usually the minimum denomination is $100,000
65Types of Short-term Investments (continued)Money Market Mutual FundsA mutual fund that pools the capital of a large number of investors and uses it to invest exclusively in short-term securitiesVirtually all brokerage firms and mutual fund companies offer themMoney Market Mutual Funds are not guaranteedUnlike Money Market Deposit Accounts from a bank or credit unionStill considered virtually risk-freeIf there is ever a default, other companies step in and bail out the investors (with blessing from govt)Virtually all offer check-writing privileges and direct transfer to and from checking accounts
66Choice of Short-term Investments So, which short-term investment is for me?Commercial paper and banker’s acceptance notes are usually only suitable for institutional investorsSavings bonds make cute gifts for newbornsMany investors purchase Treasury bills directly from the Treasury (www.treasurydirect.gov)Certificates of Deposit are okay for those that are sure that they will not need the money until maturityMoney Market Mutual Funds and Deposit Accounts are the preferred choice by most investorsEspecially since every bank, credit union, brokerage firm and mutual fund company offers themBut most non-investors still use a passbook savings account from a bank (they have not taken this course yet)
67The Emergency Fund Debate Should you have an Emergency Fund?Many financial experts recommend that households create an emergency fund of three, six or even nine months of incomeI simply do not agree with the concept of an emergency fund of three to nine months of living expenses. As long as you have access to cash (via a line of credit, for example) there is no good reason to keep $25,000 to $50,000 or more in a savings account earning 0.1%. Instead, use the money to pay down high interest debt, especially credit card debt.P.S. You are adequately insured, right?Exceptions: salespeople, the self-employed, and those who get laid off often
68Short-term Investments: What are _? A mutual fund that pools the capital of a large number of investors and uses it to invest exclusively in short-term securities.commercial papermoney market mutual fundspassbook savings accountsCertificates of Deposit (CDs)The correct answer is (B). Money market mutual funds and their counterparts at banks and credit unions have rates close to CDs without the early withdrawal penalty.
69Short-term Investments: What are _? Savings instruments in which funds must remain on deposit for a specified period. There is normally a penalty for early withdrawal.commercial papermoney market mutual fundspassbook savings accountsCertificates of Deposit (CDs)The correct answer is (D). If interest rates are going down, you can lock in a good rate. But you better hope you do not need the money until the CD matures!
70Short-term Investments: What are _? Short-term, unsecured promissory notes (IOUs) issued by corporations with very high credit standing, normally sold in $100,000 denominations.commercial papermoney market mutual fundspassbook savings accountsCertificates of Deposit (CDs)The correct answer is (A). Commercial paper and their cousins, banker’s acceptance notes, are normally only purchased by institutional investors such as money market mutual funds.
71Short-term Investments: What are _? A guaranteed demand account at a bank or credit union that normally pays little interest but will often be offered with a toaster or waffle iron which makes it all worthwhile.commercial papermoney market mutual fundspassbook savings accountsCertificates of Deposit (CDs)The correct answer is (C). No comment.
72CHAPTERS 1, 3, Lecture Notes A Brief History of Risk and Return (Chapter 1)Security Types (Chapter 3)Time Horizon & Short-term Investments (Lecture)Coming Up Next: Chapter 4, Mutual Funds