Discussion Question 1: Compare long-term instruments and short-term risks, in terms of the various types of risk to which investors are exposed. Justify your answer. Discussion Question 2: What methods can be used by the FED to influence interest rates? Are these methods effective? Use examples where appropriate. Start reviewing and responding to at least two of your classmates' postings as early in the week as possible. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion. Discussion Question 3: Why are investors risk-averse? How can investors deal with different degrees of risk? Justify your answer. Discussion Question 4: What is the expected return on a portfolio? How can the expected return on a portfolio be manipulated to minimize the risk on that portfolio? Justify your answer. Start reviewing and responding to at least two of your classmates' postings as early in the week as possible. Participate in the discussion by asking a question, providing a statement of clarification, providing a point of view with a rationale, challenging an aspect of the discussion, or indicating a relationship between one or more lines of reasoning in the discussion.