Business in a Changing World:

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Business Finance

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I need each assignment done in apa format with at least 1200 words total and 3 refs by this sunday may 20 2018

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Running Head: CASE 16

1

Case 16
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CASE 16

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1
Mansueto states that understanding multiple stocks, mutual funds, and bonds in the
market is very confusing for average investors. Given that there are wide arrays of stocks, bonds,
and mutual funds being offered in the market, Mansueto asserts that making informed judgment
on which investment portfolios to combine in order to minimize high risk is a headache to
average investors (Ferrell et al, 2015). Average investors according to Mansueto are uncertain on
which investment to venture on. Therefore, they tend to become confused on which variety of
investment to try in the market.
According to Mansueto, confusion mainly arises from the fact that there are wide
varieties of investment choices to venture in the market (Ferrell et al, 2015). Each of the
investment options such as stock, bonds, and mutual funds has thousands of options for average
investors to choose. Since reward and risk associated with stock, bonds, and mutual funds varies,
selecting the best options to combine is very confusing to average investors. According to
Mansueto, rational investors also strive to hedge the risk and invest in options that pose little risk
to their investment. Therefore, they tend to be keen on which product combinations to select in
order to minimize the risk.
Mansueto believes that average investors are confused because they are bombarded with
contradicting information that makes it difficult for them to make rational decisions (Ferrell et al,
2015). According to Mansueto, most sources of investment advice tend to have a conflicting
interest as well as inherently biased. Mansueto asserts that most of the investment advisors ten...


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