2.04 Assignment I obtained $7,500 from a short story competition that I won. I choose Individual Retirement Account (IRA) mostly for the saves on taxes and it’s long-term. Mutual fund for the potential in earning an abundance amount of money in a short amount of time. Stocks for earning the most money over a long period of time. I would say the choices I choose would make me a moderate risk taker, because the three choices I chosen balance each other out if you think about it. I would divide the money equally for the three choices which would be $2,500. When you think about diversification basically it means investing in an equal amount in a variety of assets, which I did. I looked at the risk factors for all three choices and if one or even two of them fail and last one will come through and I will make my money back. As for the rate of return it varies. If I do the IRA the rate of return will vary from the plan I choose to it. For the Mutual Fund I will earn the money in a short amount of time. That’s if everything goes well and my investment plan goes well. Now for stocks this is where it will get tricky because anything can happen. I will earn my money when my investment plan is over but it’s over a long period of time. The stocks can change at any moment. Overall, I think my choices for investment were thoroughly thought out well.