How much is an investors tolerance for risk worth over a


How much is an investor's tolerance for risk worth over a long horizon? Calculate the difference in accumulation in real terms for an investor who initially invests $25,000 and ignores it for 20 years in either a long-term Treasury bond portfolio or a portfolio of diversified common stocks. Assume the historic real returns of 2.1 percent annually for bonds and 9.3 percent for common stocks.

Solution Preview :

Prepared by a verified Expert
Finance Basics: How much is an investors tolerance for risk worth over a
Reference No:- TGS02732017

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)