Microsoft Excel 4F: Investment Decisions, Calculate Net Present Value and Risk

Overview and summary of main points:

Investing:

Many people are choosing to invest their money in savings accounts, mutual funds or in particular stocks.

A savings account is safe (even if the bank goes bankrupt the government guarantees your money up to a certain amount). Savings account are the safest investment.

Mutual funds are a collection of stocks in various businesses that are sold by investment brokers. If you don't want to pick out your own stocks, and would rather have the experts pick them out this is what a mutual fund does.

Alternatively individuals may choose to invest in any stock they think will do well. You may have a stock tip or a hunch that a certain stock will do very well. However a caution is in order, as for every person who gets rich on a lucky stock there are many more who have lost thier shirts. Some stocks are very safe and others are very risky. An example of a risky stock is one in a "gold mine" where they hope to find gold but may not. Some technology stocks are also very risky.

People who invest in risky stocks expect to gain more of a return on their investment.

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