What are the various types of investors? Complete the interactive
investor profile questionnaire at. According to this instrument, what kinds of
investments should you consider? Write an introduction to your essay that
provides a profile for yourself as an investor. What else can you find out
about investing behavior–for example, does your profile change over time as
you age or does it remain the same? How would your profile assist you and your
financial advisor or investment advisor in planning your portfolio?
Part II: Recognizing Fraud
What is a pyramid scheme exactly? Find out
at http://www.investopedia.com/articles/04/042104.asp. Have you ever participated in or
invested in such a scheme? Have you ever been a victim of one? Research and
discuss this topic in this part of your project. According to the Investopedia
article, why can it be difficult to detect a pyramid scheme? What are some
possible tip-offs to this kind of fraud? Why are pyramid schemes unsustainable?
Who are the victims? Provide a diagram illustrating the dynamics of pyramid
schemes.
Part III: Famous Scandals
Survey the Web site of a 2009 60 Minutes CBS
broadcast on the Madoff affair, which includes articles, video, and links
at https://youtu.be/s68FR1MXT8Q. According to this site, who discovered the Madoff fraud and
how? Who were Madoff’s victims? Visit the support group Web site created for
the victims at http://berniemadoffponzisupportgroup.blogspot.com/. In the CBS video, how did Madoff
defend himself? Read a Wall Street Journal article at http://online.wsj.com/article/SB123111743915052731.html, explaining how Madoff’s Ponzi scheme
was able to succeed. How did investor biases contribute to this success? How
did biases in regulatory oversight contribute to the fraud? Sample some of the
videos of the congressional hearings on the Madoff scandal at https://www.youtube.com/watch?v=FOKSkaQoF_I. Why did representatives and senators
focus their criticism on the Securities and Exchange Commission?
Use the template provided. Follow APA format,
including a title page, introduction, conclusion, citations, and five scholarly
references (not Wikipedia or Investopedia). See the attached PPT file. Turnitin
report of no more than 20% similarity index is required. Your final project
should be 4-5 pages in length.