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Principles of Finance

Extra Credit Project

Spring 2020

Name:

Student ID: U

Section:

Where a cell is highlighted in yellow , you must set up the relationships–that is, equations or spreadsheet functions–to compute the

required values. For instance, you can use the PV function that is built into the spreadsheet to compute present value where it is required,

or you can input the appropriate equation to complete the computation. Do not enter values (numbers) in these cells. The computations

should be based on information provided in other cells–that is, you should refer to the locations of the cells that contain the appropriate

information when creating the computational relationships. For example, to compute the “% Change” in salary for the period “6-10” in

Section I, the relationship entered into cell C16 should be (C15-B15)/B15. Instructions as to what needs to be computed in the yellowhighlighted cells are given in the cells that are highlighted in blue . A cell that is highlighted in tan indicates that a number from another

location (i.e., another cell) in the spreadsheet will automatically be entered into that cell.

Section I: Salary Expectations

1-5

6-10

Period (Years) After Starting Your Career

11-15

16-20

21-25

26-30

31-35

36-40

41-45

Salary:

% Change:

Enter the salaries that you expect to earn during each 5-year period that is applicable to your career expectations. Then, create the relationship

(equation) necessary to compute the percentage change in salary from one period to the next for each 5-year period.

Section II: Life Expectancy

Current age:

Retirement age:

Life expectancy age:

Years to retirement:

Years of retirement:

Enter the requested age information in the blank cells. Your “Life expectancy age” should be based on the results of the life-expectancy quizzes that

you took. Set up the appropriate relationships (equations) to compute the values requested in the cells highlighted in yellow.

Section III: Risk Preferences

You must take the risk tolerance quizzes listed in the general instructions for the Extra Credit Project. Indicate the proportion of your

retirement funds that you believe should be invested in each of the following types of investments:

Percent

(Weight)

Money market:

Bonds (long-term):

Stocks–domestic:

Stocks–foreign:

Total:

If the total is not equal to 100.0%, change the weights until it does. The weights should be based on

0,00% the results of the risk tolerance quizzes that you completed.

Section IV: Retirement Goals

The expected returns for the following types of investments:

Money market:

Bonds (long-term):

Stocks–domestic:

Stocks–foreign

Total:

Percent

(Weight)

0,00%

0,00%

0,00%

0,00%

0,00%

Expected

Rate

2,5%

6,2%

9,7%

11,5%

Portfolio

Rate

Portfolio Return

Set up the relationships that are required to compute the weighted average expected rate of return for the portfolio.

A. Retirement income

Annual retirement expenses stated in today’s dollars–that is, the amounts you would need if you were retired today. Use

reliable Internet sources to estimate your expenses/needs.

Household expenses

Healthcare

Food

Clothing

Transportation

Entertainment

Other expenses/items

Total

Average annual income during retirement –stated in today’s dollars:

Average annual inflation rate during your career :

Years to retirement:

Average annual income during retirement –stated in inflation-adjusted dollars:

$0

0

Set up the relationship required to determine the inflation-adjusted average annual income you wish to receive during your retirement

years. You can use the FV function built into the spreadsheet for this computation. The value in K63 will be the same as value in cell

K61 and the value in cell K65 will be the same as the value shown in cell G22 in Section II. These values will automatically be entered

by the spreadsheet after you set up the computation for the cells G22 and K61. The values in cells K63-K65 must be used to compute

the answer in cell K66.

B. Amount needed in your retirement fund when you retire

Average annual income during retirement –stated in inflation-adjusted dollars:

Weighted average expected rate of return on your retirement fund:

Years of retirement (how long you expect to be retired):

Total amount needed at retirement to meet your retirement goals:

$0

0,00%

0

Set up the relationship required to determine the total amount to which your retirement fund must grow during the years you expect to

make contributions (when you are working). You can use the PV function built into the spreadsheet for this computation. The values in

cells K71 – K73 will automatically be entered by the spreadsheet from the relationships you created earlier. These values must be used

to compute the answer in cell K74.

C. Value of current “retirement” investments at retirement (If you do not have an existing retirement fund, input either $5,800

or $8,200 in cell K79 and complete the rest of this section. See the instructions in the Word document to determine whether

$5,800 or $8,200 should be entered)

Present (current) value of any retirement funds that you currently have:

Expected rate of return on your retirement fund in an average market:

Years to retirement:

Total amount needed at retirement (in all retirement funds):

Value of current (existing) retirement funds at the time you retire:

Additional amount needed at retirement to meet your retirement needs:

0,00%

0

$0

Set up the relationship required to determine how much any funds that you currently have invested for retirement will be when you

retire if these funds are invested at the average rate computed in cell H48. The values in cells K80 – K82 will automatically be entered

by the spreadsheet from the relationships that you created earlier. The values in cells K79 – K82 must be used to compute the answer

in cell K83, and the value in cell K83 must be used to compute the answer in cell K84.

D. Required annual contributions to your retirement fund

Amount greater than existing funds needed at retirement to meet your needs:

Use whatever value is given in cell K90 for the computations in the remainder of

this section. The value given in K90 will differ from the value in K89 if the value in

K89 is less than $500,000.:

Years to retirement:

Normal, or average, market conditions:

Expected rate of return on your retirement fund in an average market :

Annual contributions required to accumulate amount needed at retirement:

$0

$650.000

0

0,00%

Set up the relationship required to determine the amount that must be contributed to your retirement fund each year to accumulate the

total amount that is needed in the fund when you retire. You can use the PMT function built into the spreadsheet for this computation.

The values in cells K90, K91, and K94 will automatically be entered by the spreadsheet. These values must be used to compute the

answer in cell K95. For your computation, you must use the amount given in cell K90.

Above-average market conditions

Expected rate of return on your retirement fund in an above-average market :

Annual contributions required to accumulate amount needed at retirement:

Follow the same procedure as above, except enter a rate of return in cell K99 that is 2.6 percent greater than the average expected

return computed at the beginning of this section. The values in cells K90, K91, and K99 must now be used to compute the answer in

cell K100.

Below-average market conditions

Expected rate of return on your retirement fund in a below-average market :

Annual contributions required to accumulate amount needed at retirement:

Follow the same procedure used to compute the contributions in above-market conditions, except enter a rate of return in cell K106 that

is 1.4 percent less than the average expected return computed at the beginning of this section. The values in cells K90, K91, and K106

must now be used to compute the answer in cell K107.

E. Recompute the contributions that are needed to accumulate the amount of funds required at retirement (computed in

Section B) assuming you wait to begin making contributions to your retirement fund such that the number of payments you

make (years) is 50 percent of the years reported in Section II. In other words, if you expect that you will work for 40 years

before retiring, re-compute the required retirement contributions using 20 years—that is, assume you wait 20 years to start

contributing to your retirement fund so that you have only 20 years remaining until you retire. For the computation in this

portion of the project, follow the instructions given in Part D of this section. Compute the annual contributions that must be

made to a retirement fund for the three different markets described in Part D.

In this section, you must perform the same computation as you did in Part D, except the contributions to the retirement fund will be for a

different number of years. Enter the “adjusted years” in cell K117. Follow the instructions given in Part D of this section to set up the

needed relationship in cell K121.

Use whatever value is given in cell K116 for the computations in the remainder

of this section. The value given in K116 will differ from the value in K89 if the value

in K89 is less than $400,000.:

“Adjusted” years to retirement (see description above):

Normal, or average, market conditions:

Expected rate of return on your retirement fund in an average market :

Annual contributions required to accumulate amount needed at retirement:

$500.000

0,00%

Set up the relationship required to determine the amount that must be contributed to your retirement fund each year to accumulate the

total amount that is needed in the fund when you retire. You can use the PMT function built into the spreadsheet for this computation.

The values in cells K116 and K120 will automatically be entered by the spreadsheet; the values in these cells and the value you input in

cell K117 must be used to compute the answer in cell K121.

Above-average market conditions

Expected rate of return on your retirement fund in an above-average market :

Annual contributions required to accumulate amount needed at retirement:

Follow the same procedure as above, except enter a rate of return in cell K125 that is 2.6 percent greater than the average expected

return computed at the beginning of this section. The values in cells K116, K117, and K125 must now be used to compute the answer

in cell K126.

Below-average market conditions

Expected rate of return on your retirement fund in a below-average market :

Annual contributions required to accumulate amount needed at retirement:

Follow the same procedure used to compute the contributions in above-market conditions, except enter a rate of return in cell K132 that

is 1.4 percent less than the average expected return computed at the beginning of this section. The values in cells K116, K117, and

K132 must now be used to compute the answer in cell K133.

Follow the same procedure used to compute the contributions in above-market conditions, except enter a rate of return in cell K132 that

is 1.4 percent less than the average expected return computed at the beginning of this section. The values in cells K116, K117, and

K132 must now be used to compute the answer in cell K133.

F. Recompute Parts B – D in this section assuming that the amount you withdraw from your retirement funds each year during

retirement is (i) $11,500 higher and (ii) $7,500 lower than the amount you established in Part A of this section. For this

computation, assume that the number of years you contribute to the retirement fund is the same as you originally

determined in Section II.

In this section, you must perform the same computations as you did in Parts B – D of this section, except the withdrawal from the

retirement fund will be (i) $11,500 greater and (ii) $7,500 lower than you determined in Part A of this section. You must set up the

spreadsheet format yourself to compute (a) the amount the fund must equal at retirement and (b) the contributions to the retirement

fund that are required when each of the three market conditions exist–that is, average market, above-average market, and belowaverage market. To set up the format, you can insert a new worksheet and copy the worksheet you used to perform the required

computations for Parts A – D .

REQUIREMENTS AND FORMAT FOR THE FIN 3403 EXTRA CREDIT PROJECT

The section labels given in this document correspond to the sections in the Word document that provides

the discussions of (instructions for) the project, as well as the sections contained in the spreadsheet

template (http://sbesley.myweb.usf.edu/FIN3403/retire-sp20.xlsx). For more detailed descriptions of the

requirements for each section, refer to the discussions contained in the Word document that describes the

project (http://sbesley.myweb.usf.edu/FIN3403/retire-sp20.pdf). You must use the format given in this

document for the extra credit project; simply fill in the requested information on the form. Do not change

the form in any way other than to extend the number of lines needed for your discussions. In other words,

keep the questions in the document you submit, do not reorder the questions, and do not change the

document’s general characteristics. If you use any other format, your project will not be graded (that is,

you will receive a score of zero for the entire project). Discussions must be typed; you will lose three (3)

points if your discussions are not typed. You can use more space than is provided; the spacing provided

in the template is for reference only. Use properly constructed sentences for all your discussions. You

will lose points if you use poor grammar or your sentences are not properly constructed.

Name:

Student Number: U

I.

Occupation/Career Expectations

A. Description of the career you expect to pursue:

B. Expected salary at various stages of your career: Include this information in the following

table and on your spreadsheet by entering the information requested in Section I on the

spreadsheet. You must compute the “% Change” in the spreadsheet.

1-5

6-10

Period (Years) After Starting Your Career

11-15

16-20

21-25

26-30

31-35

36-40

41-45

Salary:

% Change:

C. Sources of salary information (give specific and complete citations that indicate where you

obtained your information):

II.

Investment Horizon and Life Expectancy

A. According to the “Life expectancy quizzes” you completed, you expect to live until age:

(This age should be the “Life expectancy age” you enter in Section II of the spreadsheet.)

Discussion of the results of the “life expectancy quizzes.” Explain why you are expected to

live to the age indicated.

.

B. (1)

(2)

Age at retirement:

II of the spreadsheet.)

. (This should be the “Retirement age” you enter in Section

Number of years you will be able to contribute to your retirement fund—that is, the

number of years you expect to work:

. (This value should be computed in

Section II of the spreadsheet in the “Years to retirement” (Cell G22). Enter the result of

the computation here.)

Brief discussion as to why you chose the retirement age given in Part B(1):

C. Number of years you expect to live after retiring

. (This value should be computed

in Section II of the spreadsheet in the “Years of retirement” (Cell G23). Enter the result of the

computation here.)

Print and save copies of the results of the life expectancy quizzes you completed.

D. Based on the life expectancy quizzes, what changes in your lifestyle do you plan to make in

the future to increase the chances that you will live longer? Explain/Discuss.

III. Risk Preferences

A. Discuss the level of your risk tolerance; include the results of the risk tolerance quizzes you

completed. Do you consider yourself to be more conservative or less conservative than an

average investor with respect to taking risks? Explain/Discuss.

Discuss how you think your risk preferences might change as you get older. That is, how will

your risk preferences (tolerance) change as you near your retirement date?

B. Based on the results of the risk tolerance quizzes, indicate what proportion of your

retirement fund should be invested in each of the following types of investments:

Percent

Money market (cash & short-term debt)

Bonds (long-term debt)

Stocks—domestic

Stocks—foreign

Total

100.0%

Enter the proportions (weights) from this table in Section III on the spreadsheet template.

Explain why you think the above percentages are appropriate for your level of risk tolerance. If

the above percentages differ from those indicated in the results of your risk tolerance quizzes,

explain why you changed the weight for each type of investment area:

IV. Retirement Goals

A. Retirement Income

Annual retirement expenses stated in today’s dollars:

Household expenses

Healthcare

Food

Clothing

Transportation

Entertainment

Other expenses/items

Total amount

The “Total amount” should be the average income (amount) you estimate you will need each

year during retirement stated in today’s dollars. (Computed in cell K61 in the spreadsheet

template)

Enter the above amounts in the appropriate spaces in Section IV-A in the spreadsheet

template.

Discuss/Explain how you determined the dollar amounts given above (i.e., give the logic

behind your decisions):

Sources of information you used to determine the retirement expenses (give specific and

complete citations):

The expected average inflation rate per year from now until you retire is:

this amount in the appropriate cell in Section IV-A in the spreadsheet template.)

. (Enter

Discuss/Explain how you determined the expected average inflation rate:

Sources of information you used to determine the expected inflation rate (give specific and

complete citations):

The average annual dollar amount (income) needed during the years you are retired restated

in inflation-adjusted dollars is: $

. (This amount must be computed in the

spreadsheet—Section IV-A; cell K66. Enter the result of the computation here.)

B. The total dollar amount that must be in your retirement fund when you retire so you can

withdraw the annual funds you determined in Part A of this section is: $

.

(This amount must be computed using the spreadsheet—Section IV-B; cell K74. Enter the

result of the computation here.)

C. The amount of funds you currently (today) have invested for retirement purposes is:

$

. If you currently have no funds invested for your retirement and you are

25 years old or under, assume that you actually have $5,800 already in a retirement fund; if

you are older than 25, assume that you have $8,200 invested in a retirement fund. (This

amount should be entered into the appropriate cell in Section IV-C, cell K79 of the

spreadsheet.)

How much will the funds you currently (today) have invested for retirement purposes be

worth when you retire? $

. (This amount should be computed in Section IVC, cell K83 of the spreadsheet. Enter the result here.)

The additional amount needed at retirement to meet your retirement needs is: $

.

(This should be the total amount of funds you need when you retire to meet your retirement goals

minus the amount your existing retirement fund will grow to at retirement without making

additional contributions. This amount must be computed using the spreadsheet—Section IV-C,

cell K84. Enter the result of the computation here.)

D. The contributions (amounts invested) that must be made each year during your career to

ensure that your retirement fund accumulates the total amount needed at retirement are:

Rate of

Return (%)

Average market—use the expected portfolio rate

given at the top of Section IV in the spreadsheet

Above-average market (+2.6 percent)

Below-average market (–1.4 percent)

%

%

%

Dollar Amount of

the Contribution

$

$

$

(The “Dollar Amount of the Contribution” must be computed in the spreadsheet—Section

IV-D. Enter the results of the computations in the appropriate spaces above.)

E. Recompute the contributions that are needed to accumulate the amount of funds required at

retirement (computed in Section B) assuming you wait to begin making contributions to your

retirement fund such that the number of payments you make (years) is 50 percent of the years

reported in Section II. In other words, if you expect you will work for 40 years before retiring,

recompute the required retirement contributions using 20 years—that is, assume you wait 20

years to start contributing to your retirement fund so you have only 20 years remaining until

you retire. For the computation in this portion of the project, follow the instructions given in

Part D of this section. Compute the annual contributions that must be made to a retirement

fund for the three different markets described in Part D.

Rate of

Return (%)

Average market—use the expected portfolio rate

given at the top of Section IV in the spreadsheet

Above-average market (+2.6 percent)

Below-average market (–1.4 percent)

%

%

%

Dollar Amount of

the Contribution

$

$

$

(The “Dollar Amount of the Contribution” must be computed in the spreadsheet—Section

IV-E. Enter the results of the computations in the appropriate spaces above.)

Compare the results you found in Part D with the results you found in this section. Discuss

the reasons there is such a large difference in the contributions that must be made to the

retirement fund during the two time periods (that is, the time period in Part D and the time

period in this section).

F. Recompute Parts B – D in this section assuming the amount you withdraw from your

retirement funds each year during retirement is (i) $11,500 higher and (ii) $7,500 lower than

the amount you established in Part A. For example, if you determined the amount that should

be withdrawn from your retirement account each year after you retire is $100,000, (i)

increase that amount to $111,500 and (ii) decrease that amount to $92,500 for the

computations in this section. For this computation, assume that the number of years you

contribute to the retirement fund is the same as you originally determined in Section II.

Contribution if the annual withdrawal during retirement is:

+$11,500

–$7,500

Average (normal) market

Above-average market (+2.6 percent)

Below-average market (–1.4 percent)

$

$

$

$

$

$

(The “Dollar Amount of the Contribution” must be computed in the spreadsheet. Enter the

results of the computations in the appropriate spaces above.)

G. Discuss the feasibility of your retirement plan. Do you think your plan is attainable if you (1)

start making contributions as soon as you start your career and (2) wait to make

contributions for the number of years indicated in Part E of this section.

H. Think about the implications of the recent volatility in the financial markets. Discuss how you

think recent events that have affected financial market movements might influence your

retirement plans in the future. You must use at least two recent articles or news reports to

support your discussion. Your discussion should be a minimum of 300 words in length (typed

and double spaced) and a maximum of 600 words. Make sure you reference (cite) the

articles/news reports as well as any ideas you use in your discussion that are not your own

thoughts. Include complete information (citations) about the references you use.

PRINCIPLES OF FINANCE

FIN 3403

EXTRA CREDIT PROJECT

SPRING 2020

SUBMISSION DEADLINE: Wednesday, April 22, 2020 at 11:59 p.m.

Projects must be submitted via Canvas. Late projects will not be accepted even if they are

only a few seconds late and regardless as to why they are late. To ensure your project is

accepted, you must submit it no later than 11:59 p.m. on April 22.

Purpose

The purpose of this project is to apply some of the concepts covered in the course. Specifically, the

project requires you to develop a simple retirement plan. The approach you should take when completing

this project is that the only funds you receive at retirement are those you contribute to specific retirement

funds—that is, you should assume Social Security will not be available when you retire. In other words,

the only funds you will have available at retirement will include amounts you have already accumulated

in investments that are specifically designated for retirement and any amounts you accumulate in the

future.

Extra Credit Points

If you successfully complete the project, up to 15 points will be added to the higher of the scores you

earn on Exam 1 or Exam 2. For example, if you receive a 85 on Exam 2, your grade on that exam will be

increased to 100 if you earn full credit for the project. To receive any credit for the project, you must

earn at least 10.5 points of the possible 15 points—that is, you must get a grade of at least 70 percent;

otherwise your grade for the project will be 0. The reason for this requirement is to ensure that you take

the extra credit project seriously enough to turn in work that shows you put forth sufficient effort to

merit having one of your exam grades adjusted. As a result, the score you earn on the extra credit project

will be either 0 or some value ranging from 10.5 points to 15 points.

Your extra credit project must follow the format contained in the Word template you are required to

use for your discussions/explanations and to record the results of your computations

(http://sbesley.myweb.usf.edu/FIN3403/retire template-sp20.docx); if it does not, your project will not be

graded, which means you will receive a grade of zero (0) for the work you submit. In addition, you

should closely follow the instructions included in this document to ensure that your project is graded and

you do not lose points for not following instructions.

Prior to starting the extra credit project, it is recommended you work Time Value of Money—

Assignment #1 that is posted on the course website at http://sbesley.myweb.usf.edu/FIN3403/tvm1.doc. If you understand the two problems given in this assignment, you should be able to complete

the extra credit project without much difficulty. You must use a spreadsheet to complete the

computations required for the project. The Comprehensive Notes for Chapter 4, which are posted on

the course webpage, show how to use the time value of money functions that are available in Excel.

The link for the Chapter 4 notes is http://sbesley.myweb.usf.edu/FIN3403/notes/tvm.pdf.

1

Requirements of the Project

You should already be planning for your retirement. For this reason, the extra credit project is designed

to make you think about retirement now by requiring you to develop a simple, yet viable plan for

achieving your retirement goals. Following are the requirements that must be included in the project.

These requirements must be included in (1) the Word template that is available at

http://sbesley.myweb.usf.edu/FIN3403/retire template-sp20.docx and (2) the spreadsheet template that must be

used to complete the required computations, which is available at

http://sbesley.myweb.usf.edu/FIN3403/retire-sp20.xlsx.

I.

Occupation/Career Expectations. Provide a brief description of what you expect (hope) your

occupation(s) will be from the time you graduate from college until you retire. Include in the

description the salary range you expect to earn at the various stages of your career. Salary

estimates can be obtained from a variety of sources, including USF Career Services and the

library, but most of the needed information can be found on the Internet. To search the Internet,

use a key phrase that identifies the area in which you expect to work. For example, if you expect

to work in the finance area, the key phrase for your search should be either “finance salaries” or

“salaries in finance.” Estimate your salary in five-year increments rather than annually—that is,

estimate the average annual salary for the first five years of your career, the average annual

salary for the second five years of your career, and so forth. When estimating the salaries you

expect to earn during your career, you must consider expected inflation rates, percentage raises,

and the effects of promotions.

II.

Investment Horizon and Life Expectancy. Determine how long you expect to be able to

contribute to a retirement fund to meet your retirement goals—that is, the number of years you

expect to earn a salary in your chosen career(s). For example, if you intend to retire at age 65,

use the number of years from when you first start your career (upon graduation from USF) until

the age of 65. This will constitute your investment horizon, which is the length of time you

expect to be able to invest funds to build your retirement “nest egg.” You must also determine

the number of years you expect to live after retirement. To estimate this time period, you must

complete the following life expectancy quizzes:

John Hancock Life Expectancy Calculator: https://www.johnhancockinsurance.com/lifeexpectancy-calculator.html. Print the result at the end of the quiz.

Blueprint Income: https://www.blueprintincome.com/tools/life-expectancy-calculator-howlong-will-i-live/. After you submit the results, your life expectancy will be computed. Scroll

down the page that provides the results to see steps you can take to extend your life expectancy.

Northwestern Mutual—The Longevity Game: http://www.northwesternmutual.com/learningcenter/the-longevity-game.aspx. Print the results at the end of the quiz.

Big Life Life Expectancy quiz: https://www.projectbiglife.ca/life-expectancy-calculator.

Print the result at the end of the quiz. Click “Continue” to see “Will you live to see it?,” and

then click “Continue” again to see how your habits affect your life expectancy.

You can access the quizzes by clicking the links given above. If clicking a link does not work,

simply copy the link and paste it into the address line of your web browser. The life expectancy

quizzes will provide good estimates as to how long you should expect to live given your current

lifestyle. To determine your life expectancy, average the results of the quizzes. You must turn in

with your extra credit project a copy of the final result for each quiz; so make sure you print the

2

result of each quiz when you complete it. You can use your computer’s print screen function

(PrtScn key) to print the result that appears on the last page of each quiz.

III. Risk Preferences. Think about the degree of risk you are willing to take when investing to meet

your retirement goals, and then describe your risk preferences. Include in your description a

discussion of how you think your risk preferences might change as you progress through your

career and get closer to retirement. Part of this process is determining what risks you are willing

to take as you build up your retirement fund.

To assess your risk preferences, you must complete the following risk tolerance surveys/quizzes.

The results will help you determine your risk tolerance level, as well as the composition of a

portfolio of investments that is appropriate for your risk tolerance at this time of your life.

Calcxml.com: (1) take the risk tolerance quiz, named “What is my risk tolerance,” which

can be accessed at https://www.calcxml.com/do/inv08. Print the page that gives you the

results of the quiz; and (2) take the quiz named “How should I allocate my assets,” which

can be accessed at http://www.calcxml.com/calculators/inv01 (this link is also given in the

area that reports the results for the risk tolerance quiz). Print the page that shows the pie

chart with the recommended allocation of investments.

PsychTests: http://testyourself.psychtests.com/testid/2122 This test takes about 20 minutes to

complete. The results will give you a good idea of how you approach risk in general. Print the

final page that contains the results.

Money-Zine: http://www.money-zine.com/calculators/investment-calculators/asset-allocationcalculator/. The results give an indication of the recommended proportions that should be

invested in each type of financial asset.

Standard.com risk tolerance quiz: https://www.standard.com/assets/public/risk_public.html. The

result provided on the last page indicates how your investment portfolio should be allocated.

You can access the quizzes by clicking the links given above. If clicking a link does not work,

simply copy the link and paste it into the address line on your web browser. These risk tolerance

quizzes will provide a good estimate of your tolerance for taking risk when investing. Be sure to

print the results of each quiz you complete, because you must turn in a copy of the results for

each quiz with your extra credit project. You can use your computer’s print screen function

(PrtScn key) to print the results of the quizzes

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