FIN 420 ASSIST Career Path Begins/fin420assist.com FIN 420 ASSIST Career Path Begins/fin420assist.com | Page 5

saving over the next 10 years? (Assume monthly cash flows, and an annual interest rate of 4 percent.) --------------------------------------------------------------------------------------- FIN 420 Week 3 DQ 1 FOR MORE CLASSES VISIT www.fin420assist.com Evaluate your personal risk tolerance using Exhibit 11-2 A Quick Test to Measure Investment Risk in Ch. 11 of Focus on Personal Finance. Based on your results, were you considered more conservative or less conservative? What factors affected your investment choices? Consider a friend or family member who is more conservative or less conservative than you. How do their money management behaviors differ from your own? --------------------------------------------------------------------------------------- FIN 420 Week 3 DQ 2 FOR MORE CLASSES VISIT www.fin420assist.com Financial experts agree that having an emergency fund is an essential component of a comprehensive financial plan. However, advice regarding the number of months of household expenses the emergency fund should cover varies between 3 and 9 months. Taking into account the current financial environment, how many months of expenses would you recommend for an emergency fund and why? What are three investment options that are appropriate for an emergency fund? Which of these investment options offer the best returns? What reasons might encourage you to forego a higher return on your emergency funds? ---------------------------------------------------------------------------------------