I HAVE $1,000,000 TO INVEST FOR MY FINANCE CLASS (FAKE MONEY) WHAT WOULD BE THE BEST WAY TO MAXIMIZE PROFIT?

I wish to have the many income probable with the slightest probable risk. I have fifteen weeks to finish the choice how should i deposit my money?

{ 5 comments }

naobaijin j January 26, 2011 at 4:30 pm

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ogog.ogog January 26, 2011 at 4:46 pm

strippers and lots of booze

lucstudent January 26, 2011 at 5:32 pm

Alright, this sounds like a pretty cool assignment. You must first list your goals for this assignment. To say, you want to maximize returns is a bit generic. Here’s some realistic goals you may consider. 1) Make 10 percent return 2) 15 week limit. 3) If 10 percent is reached b4 15 weeks, you lower your risk level.

A good investor by definition means someone who holds shares of a company and expects its future prices to grow. The way, I see investing is a little different. If you’re a good investor, you should be profitable regardless of what company you choose. It’s the investment strategy that counts, and not the company choice.

I, personally, prefer dollar cost average ETFs. EEM can be a good company to apply this investment strategy. I am sure you know what dollar cost average mean. For every 10 dollar drop in prices, you would buy more shares. I would not recommend investing the entire 1 million dollar into a diversified portfolio of stocks and such. Leave some money floating around so you can purchase more shares when the market price drops without liquidating your open positions of another company. So find two ETFs you like and invest 50k into each other them. Investment 50k more every time price drops by 10 percent or so.

Since you are limited to 15 weeks of trading, you should look for volatile ETFs. Volatile ETFs mean potentially more risk, but if you can’t afford to play safe either.

shansard January 26, 2011 at 5:56 pm

Dollar cost average it in a variety of investments for maximum return and the least risk.

Ryan S January 26, 2011 at 6:46 pm

1st you should study
2nd you should read the additional material the teacher assigns
3rd you will not get the point of the exercise if others do it for you.
4th… it’s fake money… don’t worry about losing… just do what makes sense to you.. thats how you’ll learn.

good luck

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