Hazel Ann M.

Orteza BSBA FM 2-7s

WEEK 11

Answer the following questions:

1. How much money do you want to invest?

-As a student, I think I can invest P5000.00.
2. What type of investment return do you expect to achieve?
-I expect to achieve interest.
3. How much risk are you willing to take?
-I can only take low-risks.
4. What are the tax consequences of your investment decisions?
-
5. How does inflation impact your investments?
-If the inflation rate exceeds the interest earned on a savings or checking
account, then the investor is losing money. With the rise in inflation, the amount you
save or invest from your income every month may not rise at the same rate. Therefore,
the rise in price puts extra pressure on your savings and investments.

Exercise # 6

Discuss in your own words the following:

1. Why do people invest in the Stock Market?

I think the reason why people invest in stock market is because it allows you to
gain passive income and it's an income that requires you little to no effort of earning and
maintaining it. In other words, people can earn money even without doing anything. If
you can manage the risks, stocks have the potential of earning higher returns than other
investment options. Though there's no guarantee you will realize any sort of positive
returns. It will depend on your luck of choosing stocks.
2. Is investment really essential?
Yes, it is essential. Investing can help us generate more money. With investing,
we are able to ensure our future. It helps us put our savings into good use while we're
earning with it at the same time. We can also put our assets for investment so that they
can earn in value over time.
3. When do you consider a person is wealthy?
I consider a person wealthy when he/she earns money in a good manner, has
multiple assets, respected and can support other people financially.