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Case
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Reference no. BAB746C
Published by: Babson College
Originally published in: 2024
Version: January 2024
Length: 7 pages
Data source: Generalised experience

Abstract

The case, Investing to Achieve Your Goals, is intended to help students understand how to make basic investment choices to achieve a relatively near-ter (five-year) goal. It introduces the concepts and measurement of investment return and risk (standard deviation of returns). It allows students to observe the variability in outcomes that occurs as investors take more risk. It emphasizes the tradeoff between risk and return inherent in buying stocks, bonds, and mutual funds. To set these concepts in context, the case introduces Jalen, a young professional wishing to save money to make a down payment on a home mortgage five years hence. Jalen has attended an investing workshop and is working to put his learning into practice. This case best follows a discussion of finanical planning, like that in the Planning to Meet Your Goals - Kunal's Story case, and it can be used to set up discussions of mutual fund fees and retirement savings vehicles like 401(k) accounts and Individual Retirement Accounts (IRAs).

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

About

Abstract

The case, Investing to Achieve Your Goals, is intended to help students understand how to make basic investment choices to achieve a relatively near-ter (five-year) goal. It introduces the concepts and measurement of investment return and risk (standard deviation of returns). It allows students to observe the variability in outcomes that occurs as investors take more risk. It emphasizes the tradeoff between risk and return inherent in buying stocks, bonds, and mutual funds. To set these concepts in context, the case introduces Jalen, a young professional wishing to save money to make a down payment on a home mortgage five years hence. Jalen has attended an investing workshop and is working to put his learning into practice. This case best follows a discussion of finanical planning, like that in the Planning to Meet Your Goals - Kunal's Story case, and it can be used to set up discussions of mutual fund fees and retirement savings vehicles like 401(k) accounts and Individual Retirement Accounts (IRAs).

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

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