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Hi kiddo, Now that you're taking a finance class, I was hoping you could settle a disagreement that your father and I are having. We
Hi kiddo,
Now that you're taking a finance class, I was hoping you could settle a disagreement that your father and I are having. We are considering buying stock in Genral Electric (GE). We agree on what the dividends will be in the near future and how risky the company is, but I like to hold stock in our poetfolio for just a couple of years and your dad likes to hold for 10 years or more. Based on what you've been learning about valuing financial assets, do you think we should be able to agree on a fair price for the stock given how we can't agree on how long to hold the stock? That is, should our intended holding period affect what we should be willing to pay?
I hope to hear from you soon!
Love,
Mom
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