You are given an investment proposal that promises a return of 8.0%, is this acceptable?
most of us will decide on the basis of comparing this return to what we normally received.
- a bank depositor getting 2% will see this as an attractive alternative.
- while a seasoned stock market investor earning an average of 20% to 30% may not be interested
going back to the 8.0% (is this higher than inflation? - investment hurdle) proposal, let's say it's a long-term deposit with a large reputable bank (investment risk) with a 10-year holding period (investment tenor), is this now acceptable?
#acgadvice
No comments:
Post a Comment