1. Why is focusing on short-term profits, instead of building long-term shareholder wealth, often counterproductive? Which would you focus on and why?
2. You borrow $50,000 today. If the interest rate is 6 percent compounded monthly and you make monthly payments of $250, how long will it take you to pay off your loan? Make sure to show your work.
3. How will you increase the odds of investment firm success via your knowledge of anomalies? P/E, small firm, etc.