Friday, October 4, 2013
October 4 - Online Discussion Question 2
John is a senior in high school. His father, Alfred, is a successful businessman. The two are very close and talk openly about things, including money and investments. Alfred decides to change his investments and he puts one-fourth of his money in a steadily growing company, one-fourth in a rapidly growing company, one-fourth in a single company that has paid good dividends, and one-fourth in one based overseas. When he tells John, he is shocked that John is worried. Is John right to be worried? Why or why not?
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He shouldn't be worried because the money he invested is diversified.
ReplyDeleteJohn should not be worried because diversification was done. If you place all your eggs in one basket they'll break. But, due to the fact that John did diversification, there was no need to worry about breaking eggs :)
ReplyDeleteHe shouldn't be worried, he has his money diversified and in different types of investments.
ReplyDeleteHe shouldn't be worried at all, his dad invested wisely in four different companies. His money is spread out and he chose good places to invest his money.
ReplyDeleteHe doesn't have to be worried because the money is diversified.
ReplyDeleteAutumn
His money is diversified. Which means that he should not be worried, even if one investment goes bad, he still has the other three.
ReplyDeleteHe shouldn't be worried, his dad was smart and diversified his money, taking a bunch of risk out of his investing
ReplyDeleteHe shouldn't be worried! His dad has invested in four different items, the minimum for diversification. This has lowered the risk, and he can see which ones will do well to possibly put more in again.
ReplyDeletejohn should not worry because his father's investments are well diversified
ReplyDeletetravis
Adam
ReplyDeleteHe has the right to be nervous because his dad just put all the money in single stocks. This is bad because single stocks are very risky to invest in.
I don't think John really needs to be worried. Alfred was right to diversify.
ReplyDeleteeyezik
His dad diversified, so John shouldn't worry.
ReplyDeletehe should not be worried because all of the money was diversified and he has a much better chance of success.
ReplyDelete-Jacob