Justify why using options is an effective way to reduce the overall risk in a portfolio.

1)Financial Statement Analysis” Please respond to the following:

  • From the e-Activity, provide a defense for why the company that you chose is or is not a good investment based only on its financial statements. Provide support for your rationale.
  • Take a position on whether or not a financial statement analysis is an important tool to use when selecting investments. Support your position with two examples.
  • 2)Options Markets” Please respond to the following:
    • Justify why using options is an effective way to reduce the overall risk in a portfolio. Provide an example for your justification.
    • Determine whether you would or would not invest in the options market. Support your decision with two reasons
  • Go to the financial statement page of Yahoo! Finance’s Website, located at http://biz.yahoo.com/reports/financials.html, and select a company that interests you. Review the selected company’s financial statements. Be prepared to discuss.