Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. Some financial advisers view the golden ratio 4 1+x5 ~ 1.618 as an important number when determining how long to hold onto an investment.

image text in transcribed
1. Some financial advisers view the golden ratio 4 1+x5 ~ 1.618 as an important number when determining how long to hold onto an investment. I swear I am not kidding, for example: Investopedia. Suppose you want to derive something like the "Rule of 70" but not for doubling time, but rather for the amount of ime it takes until your initial investment C in a stock reaches the amount WC, at which point you should sell. I reiterate that this is absolutely a real thing: Smithsonian Magazine. Compare the Rule of 48 and the "Rule of 50 as an approximation for this time; when would one be better than the other? 1. Some financial advisers view the golden ratio 4 1+x5 ~ 1.618 as an important number when determining how long to hold onto an investment. I swear I am not kidding, for example: Investopedia. Suppose you want to derive something like the "Rule of 70" but not for doubling time, but rather for the amount of ime it takes until your initial investment C in a stock reaches the amount WC, at which point you should sell. I reiterate that this is absolutely a real thing: Smithsonian Magazine. Compare the Rule of 48 and the "Rule of 50 as an approximation for this time; when would one be better than the other

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance Turning Money Into Wealth

Authors: Arthur J. Keown

6th Edition

0132719169, 978-0132719162

More Books

Students also viewed these Finance questions