Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

14. According to an article in Forbes magazine: When it comes to success in investing, It's not about timing the market. It's about time in

image text in transcribed

14. According to an article in Forbes magazine: When it comes to success in investing, "It's not about timing the market. It's about time in the market, "said Taylor Wilson, a certified fin ancial planner and president of Greenstone Wealth Management in Forest City, Iowa. Say you'd invested $10,000 at the start of 1981 in the S\&P 500 . That money would have grown to nearly $1.1 million by March 31, 2021, according to Fidelity Management \& Research. Had you missed just the five best trading days during those 40 years, it would only have grown to roughly $676,000. And if you'd sat out the best 30 days, your $10,000 would only have grown to $177,000. Calculate the average rate of return for each of the three scenarios listed above. a.) Investing and leaving it alone from January 1981 until March 2021 . Does this confirm/debunk Ramsey's claim above? b.) Missing the five best days during those 40 years. c.) Missing the best 30 days

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_2

Step: 3

blur-text-image_3

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

Campaign Finance Reform

Authors: Melissa M. Smith, Glenda C. Williams, Larry Powell, Gary A. Copeland

1st Edition

0739145657, 978-0739145654

More Books

Students also viewed these Finance questions

Question

Describe the new structures for the HRM function. page 676

Answered: 1 week ago