Personal Finance Section 6

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Assignment 6 (26 points) Assignment 6: Insurance and Consumer Protection Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions 1. Think of a real or made up but realistic example of a pure risk that you or someone you know may face, and then answer the questions below. a. Describe the specific risk. (1-3 sentences. 0.5 points) Unemployment is a pure risk. b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 1.0 points) You don’t have any income. You won’t be able to pay your bills. c. Would this risk be likely to create unexpected expenses? Why or why not? (1-3 sentences. 1.0 points) No, unless you got hurt, sick, or something broke down. d. Describe at least one way you could protect yourself against this risk. (1-3 sentences. 1.0 points) You should always have money saved up. Enough to be able to pay your bills for 3 months. That should give you enough time to figure out what your going to do. 2. Think of a real or made up but realistic example of a speculative risk that you or someone you know may face, and then answer the questions below. a. Describe the specific risk. (1-3 sentences. 0.5 points) An investment is a specific risk. b. What sort of negative outcomes are possible for this type of risk? (1-3 sentences. 0.5 points) Investments can fail. Therefore you

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