Monday, March 15, 2010

Risk

Our risk tolerance is moderate. We don't want to be low risk because they don't guarantee high profit. However with high risk, we may gain a lot of money, and at the same time we can lose it all. We are moderate because it is in the middle, and not too risky; it's either you lose some and survive or lose it all and end up with nothing.

The goal of our group is to invest in several stocks, that way we have a widespread of our money which may give us a better chance of making more money.Whereas if we only invest in one stock, we either will lose all our input or gain just a little. We would invest in stocks based on their previous success; if they did good before, then they will do good now and in the future, however if their previous records so they were not so successful or perhaps had a drastic downfall, then we will choose another stock.

We will divide it amongst 4 people, but the head will make a little more profit. This means each participant will get 24% and the head will receive 26%. This way the head makes more due to the fact that they have to make sure the team stays on task.

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