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Unit 6: Investment Strategies-I

7. Explain the eligibility criteria for following types of loans: Notes
a. Home Loan
b. Car Loan
c. Personal Loan

8. What point should be kept in mind while choosing a home loan?
9. Which is better loan from the point of view of a borrower: Loan with fixed rate of interest
or a loan with floating rate of interest? Give reasons for your answers.

10. How will you compare the loan options available from different types of banks?
11. Why do people take personal loans? What is the rate of interest charged by banks for
personal loans?

12. Which factors play a significant role when a person makes an investment decision? Discuss
using examples.

Answers: Self Assessment

1. Asset Allocation 2. Diversification
3. Stocks 4. Money market instruments

5. Portfolio 6. True
7. True 8. False
9. False 10. True

6.7 Further Readings

Books Cohen, Jerome, B.: Zinbarg, Edward D., and Zeikel, Arthur: Investment Analysis
and Portfolio Management, Homewood, Ill.: Richard D. Irwin, 2006.
Cottle, C.C., and Whitman, W.T.: Investment Timing: The Formula Plan Approach,
New York, McGraw Hill, 1953.
Craig, Malcolm: Investment to Survive to 80s: Inside Information for Businessmen and
Investments, Berkshire, Scope Books, 1980.

Curley, Anthony J. and Bear, Robert M.: Investment Analysis and Management, NY,
Harper & Row, 2003.
D. Ambrosio, Charles A.: Guide to Successful Investing, Englewood Cliffs, NJ
Prentice-Hall, 1970.

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