Question

In: Finance

You see an advertisement in a book that shows how you can make a million dollars...

You see an advertisement in a book that shows how you can make a million dollars by investing in the stock market with little or no risk and very little investment. Do you buy the book? Why or why not? If you would buy the book, consider how much you would be willing to pay.

Solutions

Expert Solution

I would prefer not to buy the book because investing is no easy game and it requires a lot of skills and patience in order to invest through the different economic scenarios in order to multiply the returns.

Market risks associated with investment cannot be eliminated because those are systematic risk in nature and when an investor will be investing into the market he will be exposed to these kinds of risks.

I will not buy the book as there is no fast money making program and getting rich quick program through investing because when one is invested onr will go through different phases and he survives through them only then he can reap The returns of investments. It is never an easy thing to ride an investment for a long term because there are a whole lot of risks associated with it, even company in which you have invested can not survive and there is a risk associated with erosion of capital.

So I will prefer to avoid the book.


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