1. Explaining the Principle of Asset Allocation. Using the Internet or library research, prepare a two-minute presentation describing why the principle of asset allocation is important when establishing an investment program.
2. Using Financial Information to Track the Value of an Investment. Choose one stock and one mutual fund investment. Using the Internet, The Wall Street Journal, or your local newspaper, track the value of both investments on a daily basis for a two-week period. Then construct a graph that illustrates the changes in each investment’s value over the two-week period. In a one-page report, indicate whether either of the two investments would have been a good investment over the two-week time period. Explain your answer.
3. Using Investment Information. Assume you have established an emergency fund and have saved an additional $12,000 to fund an investment in common stock issued by AT&T Corporation. Using the sources of information discussed in this chapter, go to the library or use the Internet to obtain information about this company. Summarize your findings in a three-page report describing AT&T’s current operations and the firm’s past and present financial performance. Finally, indicate whether you would purchase AT&T common stock based on the information in your report.
