About This Chapter
Investment Planning - Chapter Summary
This chapter includes lessons demonstrating various aspects of investment planning. You'll review pertinent terminology while exploring important considerations to take into account. Potential investment planning approaches are also covered. By the end of the chapter you'll have improved your understanding of investment risks, returns on investments, investment portfolios, and all of the following:
- Quantitative investment concepts
- Stocks and bonds
- Strategies of a successful investment plan
- Alternative investments
The practice quizzes accompanying each lesson allow you to monitor your comprehension of each topic as you go along. These quizzes will point you right back to the related part of the lesson if you answer a question incorrectly, and they can also be printed as worksheets for study while away from your computer. At the end of the chapter you'll find a practice final exam that you can use to measure your knowledge in a more overall fashion.
1. Quantitative Investment Concepts: Definition & Examples
Investors want to make more money when they make investments. But investments are never guaranteed and there is no certainty that any investment will make more money. In this lesson we will learn about some tools that can help try to narrow in on the best investment.
2. Return on Investment: Definition, Formula & Example
Return on investment is a crucial analytical tool used by both businesses and investors. In this lesson, you'll learn the basic formula, discover a variant used for shareholders, and be provided examples.
3. Value of Stocks & Bonds: Factors & Calculation
This lesson will define stocks and bonds. It will then discuss three methods for calculating the value of a share of stock. Finally, it will explain how to value a bond.
4. Investment Portfolios: Development & Analysis
Much of the time, specific companies or an index, like the S&P or Dow Jones, are the focus of stock market chat. In this lesson, we'll learn why you should focus just as much on developing and analyzing your entire portfolio.
5. Investment Portfolios: Asset Allocation & Diversification
In this lesson, we'll review the principles of asset allocation, rebalancing, and diversification as they relate to designing a strong and stable investment portfolio.
6. Successful Investment Plan Strategy: Components & Decisions
This lesson will help you understand the components of planning a successful investment strategy by addressing key factors influencing investment decisions as well as components of a successful investment strategy plan.
7. Alternative Investments: Definition, Benefits & Drawbacks
In this lesson, we will define the phrase alternative investment. The lesson will also address relevant issues like various types of alternative investments, identifying their benefits as well as their drawbacks.
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Other chapters within the CFP Certification Exam Study Guide - Certified Financial Planner course
- CFP Board Rules & Regulations
- Financial Planner Professional Conduct & Regulation
- General Principles of Financial Planning
- Education Financial Planning
- Individual Insurance Planning
- Risk Management & Business Insurance Planning
- Types of Investment Vehicles
- Tax Planning
- Retirement Savings & Income Planning for Individuals
- Retirement Savings & Income Planning for Businesses
- Estate Planning Strategies
- Financial Planning for Personal Life Situations
- CFP Client Relationship
- CFP Certification Exam Study Guide - Certified Financial Planner Flashcards