Learning Team Reflection Augusto Alvarez, Ani Hakobyan, Stephanie Kirk, Cristina Linares, Debbie Voeks FIN/571 Foundations of Corporate Finance June 23, 2014 Clifford Merchant

Learning Team Reflection Introduction
Turning tangible assets into investments is nothing new, investors did the same thing during previous market downturns, and they did not always come out ahead. A year ago, 49 years old Peggy Parks, who worked as a building code auditor got tired of watching her retirement savings investments going in the wrong direction and resulting in losing half of her 401(K) investments. To recover from that lost, Peggy Parks made an unconventional investment after learning how robust the Alpaca’s business can be. According to Peggy, “with Alpacas it is something tangible that you have on hand and always going to be there” (University of Phoenix, 2014). Diversification
Peggy lost almost half her retirement in the stock market and decided to turn to the Alpaca business for her new retirement plan (University of Phoenix, 2014). She had made a good return the first year of business. There is a risk involved with investing in only one asset. Stable Money Makers demonstrated this when it mentioned how investors lost significant money from investing in Emus in the 1990’s. Diversification is reducing risk by investing in two or more assets whose values do not always move in the same direction at the same time (Parrino, Kidwell, & Bates, 2012, p. 214). Investing in another asset in addition to the Alpacas would improve Peggy's business. If Peggy wants another tangible asset investing in cattle or production of hay are good options. They are not directly related to the Alpacas so if prices fall on