[FIN 2984] - Final Exam Guide - Everything you need to know! (47 pages long)
29 Nov 2016
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Don"t listen to everything you hear - bias a. Have a plan and stick to it a. The focus of insurance should be on major catastrophes. What determines how much risk you can take i. Time horizon, need investment returns for living expenses, liquidity, etc. c. Very long term average annual returns for large company stocks are about 10. 4% so why not just invest everything in large company stocks? i. Total return in bought s&p 500 in 2007 vs. 2009 a) b) If you sell your investments in one year to buy a car or house, how do you know if this year will be a good or bad one for the stock market? i. 2001 s&p 500: loss 10. 03% i. ii. iii. If you have more time to invest and pull out of the market (larger time horizon) then you can be more aggressive. Price of things tend to increase over time.
