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Investment Basics
Yeshanew Belayneh
Major: Economics
Minor: Finance, Mathematics
Agendas
• Goldman Sachs Group
• Investment
• Risk profile
• Diversification
• Asset allocation
• Rebalancing
Goldman Sachs Group Inc.
• Investment banking
• Investment management
• Securities services
What is investment?
• how you make your money grow, or
appreciate
Risk profile
• What is your investment
– objective?
• Preservation of capital
• Regular income
• Growth in capital
– horizon?
• Short, medium, or long term
– personality?
• Risk tolerance
Simple ways to minimize risk
• Diversification
• Asset allocation
Simple ways to minimize risk cont.
• Rebalancing
Conclusion
• Risk tolerance/aversion
• Investment timeframe
• Appropriate saving/investment vehicles
• Diversification

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