investment

Part 1 investment 800 word

How would the asset allocation differ between a 25 year-old who is saving for retirement and a 67 year-old who is beginning retirement?

Be sure to provide the following:

•Give a reasonable stock-to-bond ratio for each investor.

•Explain your allocation.

Focus your discussion on the following:

•Asset allocation

•Time horizon

•Ability to assume risk

•Earning capacity

•Income needs

Use General Electric Company to research

Focus your discussion on the following:

•How does the company use derivatives as a means to manage risk and enhance returns?

Be sure to discuss how the following can be used to manage the risk of the selected company:

•Options

•Forwards

•Futures

Part 2 Risk Management 400 words

Many benefits, known as riders, can be added on to life insurance policies. Some are added at no cost to the insured, and some have an additional cost. They provide additional protection to the insured. Define the following types of riders, and list the benefits of each:

•Long-term-care insurance rider

•Waiver-of-premium rider

•Cost-of-living rider

•Accelerated death benefit rider

•Double indemnity rider

•Guaranteed purchase option

Briefly describe the following types of life insurance policies:

•Variable life

•Term life

•Universal life

List all references