Problem 1: Suppose you have $50,000 that you must invest. Generally, how will you invest it? What are your reasons for this investment?
Please comment on the risk, liquidity, safety, diversity, and potential return on investment on some of the investments mentioned here.
Please consider the current state of the economy -- a weak housing market, rising food and energy prices, stock market lows for many industries, weak credit markets, a weak mortgage and real estate market, and a looming recession. Do explain the reason for your chosen investment(s).