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Unformatted text preview: • Key behaviors: o Maximize expected returns o Minimize risk o Markowitz Nobel Prize • Now look at individual securities: o Minimum: Woolworth, -.3% a month o Maximum: Primerica, 4.5% a month o Average of all 30 stocks: 1.55% a month o ’90 – ’98: Phenomenally good time period for stocks Dot Com Bubble • Stocks return more than bonds, but they’re riskier (historically) • Market timing: o Is now the right time to go into equities?...
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- Spring '08
- Corporate Finance, large company stocks, Govt./ treasury bonds