Questions/Problems – Short-term Investments
One method healthcare companies use to finance future growth is to invest their excess cash in short-term investments. The four most common short-term investments are treasury bills, CDs, commercial paper, and money markets.
- In your own words, explain how each of the four investments work and their relative risk level.
- If your company had $100,000 to invest for around 1-year, which one of the 4 types of short-term investment would you suggest using and why?
- Look at CD rates over different time periods. What are the current CD rates for 1-year? 5-years? 10-years? (You can find CD rates on many bank’s websites.) Why do you think the rates are different?
Submit your completed assignment by following the directions linked below. Please check the Course Calendar for specific due dates.
Save your assignment as a Microsoft Word document. (Mac users, please remember to append the “.docx” extension to the filename.) The name of the file should be your first initial and last name, followed by an underscore and the name of the assignment, and an underscore and the date. An example is shown below:
Need Help? Click here for complete drop box instructions.