March 18th, 2019 
admin2 days
Read the following two files The Most Important Thing – Understanding Risk from the bookThe Most Important Thingby Howard Marks.
I am interested to know your thoughtson investment risk from the perspective of common stock investment. To be more precise when you invest in a common stock what worries the investors – deterioratingof business fundamentals or volatility of the stock price. Now one can argue that the fundamentals are being reflected or should be reflected in the stock price. If you believe in market inefficiency and irrational behaviour of investors you will know that market doesn’t always incorporate business fundamentals instantly as hypothesized by the market efficiency theory.
Your grade solely depend on your understanding of the concept. Certainly I don’t want you to reproduce our work. Apart from reading this chapter you may want to consider the class discussions on risk and return.
Page limit: ONE page
Posted in Uncategorized