Blog

Which of the 5C’s is the most important directly impacting all the other C’s, explaining why? Character (FICO) Capacity (Debt Ratios) Capital (Net Worth) Collateral (Pledged) Condtions (Job, Economy)  

Trying to time the market is a recommended investment strategy?  Why or why not?

5C’s of Credit Underwriting Consumer Loans Instructions: evaluate the borrower profiles to approve or decline a loan request for buying a home Borrower Profile (1) Underwriting Factor 750 FICO 28% Home Debt Ratio 36% Total Debt Ratio High Net Worth 3 Mo. Cash Emergency Fund in Place Moderate Retirement Savings 20% Down Payment 80% Loan to Value Ratio Accountant 15 Years (H) Nurse 15 Year (W) Satisfactory Economic Conditions 2 Children saving for college Approve or Decline (Underline Your Answer)   Borrower Profile (2) Underwriting Factor 600 FICO 45% Home Debt Ratio 55% Total Debt Ratio Low Net Worth No Cash Emergency Fund in Place Low Retirement Savings 5% Down Payment 95% Loan to Value Ratio Accountant 3Years (H) Nurse 2 Year (W) Satisfactory Economic Conditions 1 Child not saving for college Approve or Decline (Underline Your Answer)   Borrower Profile (3) Underwriting Factor 700 FICO 32% Home Debt Ratio 40% Total Debt Ratio Moderate Net Worth 2 Mo. Cash Emergency Fund in Place Low Retirement Savings 20% Down Payment 80% Loan to Value Ratio Accountant 10 Years (H) Nurse 8 Years (W) Satisfactory Economic Conditions 3 Children limited college savings  Approve or Decline (Underline Your Answer)  

Monetary and interest rate policy is monitored, managed, and implemented by the FED to achieve it’s Congress aproved dual mandate of maintaining price stability and full employment 

Corporate ESG (Environmental, Social, Governance) (1) Do you believe it should be a choice or responsibility, explaining your postion (2) Do you believe the Fermainan Business School curriculum aligns with ESG, explaining why or why not?

401(k) plans allow withdrawals for buying a home, medica, and education.  Should withdrawals be taken these purposes?  Why or why not? 

What percentage do most financial planners recommend alternative investments be as a component of a diversified asset allocation plan:

Underline or highlight if these statements are true or false                                                                                                                                Alternative investments are high risk (true, false) Investing in commodities is speculative, risky, technical requring specialized knowledge (true, false) Money invested in alternatives is money you cannot afford to lose (true, false) Investing in gold is a hedge against geopolitical uncertainty and dollar devaluation (true, false) Gold bars/coins earn income similar to stocks paying a dividend (true, false) Investing in crypto is non-speculative and non-volatile (true, false) Crypto has the potential to become a significant global payment mechanism Crypto has the potential to become a world currency replacing the dollar Investing in crypto has no regulatory, cybersecurity, fraud, or insurance risk    

Private Equity, Hedge Funds, Venture Capital Funds Which of the following statements is indicative of a private equity or hedge fund or both? 

Is each statement true or false