DIRECTION: Restricted essay.

Limit your answer to

two to five sentences only. Write your answer on a
separate sheet of paper (15 point’s)
1. Why would a risks-taker (likes to take risks) type
of investor prefer equities over fixed income? (5
point’s)
Equity investment provide investors with higher returns
than fixed income instruments. Higher returns, however,
are accompanied by higher risks, which include both
systematic and unsympathetic risks. Equities are more
tangible than fixed income, and guaranteed returns on
investments.
2. Why would a risk’s-averse (likes to avoid risks)
type of investor prefer fixed income over equities? (5
point’s)
A risks averse investor tends to avoid relatively higher
risk investment such as stocks, options, and futures.
They prefer to stick with investment with guaranteed
returns and lower-to-no risks.
3. If let’s say you have PHP 1,000,000.00 today, which
you can invest for the next 10 years, where will you
put it and why? (5 point’s)
I will invest my 1 million php and took the risks with
returns on investments, maybe on companies in stock
market with much higher stability like for example in a
food business. I will put my money in companies like
Jollibee, or McDonalds, investing on a stock market
taking the risks. Less risks are at stake, for there is much
assurance and food are surely in a boost.

BUSINSS FINANCE
DIRECTION: Answer the following questions on a
separate sheet of paper.
1. If you have savings, would you put it in stocks or in
a time deposit? Why?
At this time, I will put my money in a time deposit at
first. Whereas, when it reaches beyond my extras
thereafter I will put it in a stock after thorough study.
2. Knowing the ways to measure the risks, will it help
you decide whether to place your money in an
investment or not?
After thorough study of the ways of measuring the risks
and have convincing facts, I will put my money in an
investment.
3.Why do you think you need to know how to
measure the risks of investing?
In any ways, at any costs, I would rather know how to
measure the risks of investing, with the assurance that
my money is safe and will have a high return on
investments.