Discuss how you determine your preference for risk?Read the document to complete 2.4 Exercise #2 Construct a work sheet with your transaction, precautionary, and speculative demand items with the risk, liquidity, and yield requirements for each of 20 items. Add a column for the type of investment you would seek to use for each item given the risk, liquidity and yield requirements. Transactions Demand Number Item Risk Liquidity Yield type of Investment 1 Food low weekly low checking account 2 Car low monthly low money market . . 20 Precautionary Demand Number Item Risk Liquidity Yield type of Investment 1 2 , , 5 Speculative Demand Number Item Risk Liquidity Yield type of Investment 1 2 . . 5
