1. What are the two parameters for selecting investments in the finance world? How do...
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Finance
1. What are the two parameters for selecting investments in the finance world? How do investors try to get the most out of their investments with regard to these two parameters?
2. What are the two ways to measure performance in the finance world?
3. Why is it not practical to convert holding period returns from very short periods to annual returns?
4. How do we define risk?
5. What type of investment had the highest return on average and the largest variance from 1950 to 1999? How much did this investment vary over that fifty-year period?
6. What is one of the problems of dealing with an event that has a large number of potential outcomes?
7. What are the two investment rules, and how do they influence choices when considering a pair of potential investments?
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