Chapter 14 Reflection

Have you considered the trade-off between risk and return when making an investment?  Did it change your investment? Do you expect a risk premium related to the level of risk? 

I feel like yes I have but I’ve never really thought about it a lot I do think about investing money on more expensive products and what the outcome would be and if I could make full use of how much I spent on the product to be able to gage if it was a good purchase/investment or not.

Why is the present value of a dollar more valuable than its future value?

The present value of a dollar is more right now because in the future it will be affected by inflation and or interest rate. The value of money changes with the economy meaning that the dollar would be less in a few years like if you look at it from way back in the day you could buy a lot with 50 dollars.

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