Justify why using options is an effective way to reduce the overall risk in a portfolio.

“Financial Statement Analysis”

From the e-Activity, provide a defense for why the company that you chose is or is not a good investment based only on its financial statements. Provide support for your rationale. (Go to the financial statement page of Yahoo! Finance’s Website, located at http://biz.yahoo.com/reports/financials.html, and select a company that interests you. Review the selected company’s financial statements.)

Take a position on whether or not a financial statement analysis is an important tool to use when selecting investments. Support your position with two examples.

“Options Markets”

Justify why using options is an effective way to reduce the overall risk in a portfolio. Provide an example for your justification. Determine whether you would or would not invest in the options market. Support your decision with two reasons.

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