Financial Management: Principles and Applications, 13/e

Study Questions

1. 8–1. In Regardless of Your Major: Risk and Your Personal Investment Plan on page 224 , what are the four guidelines suggested for analyzing your personal investment decisions?

2. 8–2. What did Depression-era humorist Will Rogers mean when he said, “People tell me about the great return I’m going to get on my investment, but I’m more concerned about the return of my investment”?

3. 8–3. Describe the relationship between the expected rate of return for an individual investment and the expected rate of return for a portfolio of several investments.

4. 8–4. While you are home for fall break, your grandfather tells you that he has purchased the stock of two firms in the automobile industry: Toyota and Ford. He goes on to discuss the ...