Chapter 6, Problem 18AA

To determine

To analyze: the ways in which a person can diversify investment of retirement.

Explanation of Solution

An investment is an asset or commodity acquired with the intention of producing revenue or appreciation. Like, an investor will now buy a monetary asset with the expectation that the asset will give revenue in the future or be sold for a profit at a higher price later on.

The types of retirement investment that one can use are as follows:

Type of Investment	Description
Bonds	A loan to a corporation or government that pays back a fixed rate of return is a bond.
Stocks	A stock is a general word used to illustrate any company's ownership certificates.
Share	A share is an indivisible capital entity, reflecting the association between the corporation and the shareholder in terms of possession.