The role financial markets play in creating economic wealth in the United States.

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Instructions
Write a 5–6 page paper in which you:

Analyze the role financial markets play in creating economic wealth in the United States.
Provide a general overview of each of the three securities you chose. Be sure to include such information as name, company it represents (if applicable), pricing, and historical performance.
Assess the current risk-return relationship of each of the three securities.
Recommend one strategy for maximizing return for the current risk-return relationship identified for each of the three securities.
Suggest how the Federal Reserve and its monetary policy affect each of the three securities today.
Determine whether each of the three securities is a good investment in the next twelve months, five years, and ten years. Provide a rationale for each security with your determination.
Use at least six quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.
This course requires the use of Strayer Writing Standards (SWS). The library is your home for SWS assistance, including citations and formatting. Please refer to the Library site for all support. Check with your professor for any additional instructions.

The specific course learning outcome associated with this assignment is:

Determine how to maximize returns on specific securities, how they are impacted by monetary policy, and whether they are a good investment over time.

 

Sample Solution

Outline

  1. Introduction
  • Brief overview of financial markets and their role in economic growth
  • Thesis statement: Financial markets are crucial in allocating capital, facilitating risk management, and promoting innovation, thereby contributing significantly to economic wealth.
  1. The Role of Financial Markets in Creating Economic Wealth
  • Function of financial markets as intermediaries between savers and investors
  • Role in capital allocation and resource mobilization
  • Contribution to risk management and diversification
  • Facilitation of innovation and entrepreneurship
  • Impact on economic growth and development

III. Overview of Selected Securities

  • Security 1: [Name, Company, Pricing, Historical Performance]
  • Security 2: [Name, Company, Pricing, Historical Performance]
  • Security 3: [Name, Company, Pricing, Historical Performance]
  1. Risk-Return Analysis
  • Calculation or estimation of expected returns for each security
  • Assessment of risk factors (market, credit, liquidity)
  • Determination of the risk-return profile for each security
  1. Maximizing Returns for the Current Risk-Return Relationship
  • Strategy for Security 1: [Explanation of strategy]
  • Strategy for Security 2: [Explanation of strategy]
  • Strategy for Security 3: [Explanation of strategy]
  1. Impact of Federal Reserve Monetary Policy
  • Analysis of how monetary policy affects interest rates, inflation, and economic growth
  • Impact of monetary policy on Security 1
  • Impact of monetary policy on Security 2
  • Impact of monetary policy on Security 3

VII. Investment Potential

  • Security 1: Investment potential in 12 months, 5 years, and 10 years
  • Security 2: Investment potential in 12 months, 5 years, and 10 years
  • Security 3: Investment potential in 12 months, 5 years, and 10 years

VIII. Conclusion

  • Recapitulation of the importance of financial markets
  • Summary of the analysis of the selected securities
  • Final thoughts on the investment landscape

Research and Writing Tips

  • Choose relevant securities: Consider factors such as your investment goals, risk tolerance, and market conditions.
  • Utilize academic databases: Explore databases like JSTOR, Google Scholar, and your university’s library resources.
  • Incorporate data and analysis: Use financial data and statistical analysis to support your arguments.
  • Consider diversification: Discuss the importance of diversification in managing investment risk.
  • Address potential challenges: Analyze potential economic and market risks that could impact your investment decisions.

Example Securities

  • Stocks: Apple (AAPL), Johnson & Johnson (JNJ)
  • Bonds: US Treasury Bonds, Corporate Bonds
  • Mutual Funds: Index Funds, Sector Funds

Remember to replace the placeholder information with specific details about the securities you choose.

By following this outline and conducting thorough research, you can produce a comprehensive and informative paper that demonstrates your understanding of financial markets and investment analysis.

 

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