Assignment
1) How can you compare "tulip mania" from 17th century Holland to the dot.com debacle of the 20th century from a financial point of view?
2) Name and explain three ways in which the Internet revolution changed the lives of ordinary citizens.
3) How did the birth online discount stock brokerages impact the Internet revolution?
4) If you were an investor during the dot.com revolution, and you invested primarily in technology stocks, what fundamental principle of finance did you ignore and how did it affect the value of your portfolio?
5) What is diversification and what is its value for investors' portfolios?
6) Explain the relationship between the potential return on a common stock and the risk of that stock.
References:
Loth, R. (2007, June 13). Measuring a Fund's Risk and Return.
Ross, S. A., Jordan, B. D., & Westerfield, R. (2016). Fundamentals of corporate finance. New York, NY: McGraw-Hill/Irwin.