Question

In: Finance

Bogelheads believe in market timing provided an advisor is carefully chosen. a) Do you agree with...

Bogelheads believe in market timing provided an advisor is carefully chosen.

a) Do you agree with the above statement?

b) What strategy works best for investing?

c) If your portfolio's value decreases by more than the market what is one explanation?

d) Are you a bogelhead? Why or why not?

Solutions

Expert Solution

a) No boggle head investing does not believe in market timing. Infact, Bogelheads believes that market timing is hazardous to  wealth.

b) The best strategy that works for investing is buy low and sell high. Investors should buy undervalued stocks and sell them when the price rises . At the same times, investors should be careful about the nature of the company , that they are investing in they should choose only the financially sound companies.

c) If our portfolios value decreases more than the market, it simply means that the stocks that are comprising the portfolio have faces unsystematic risk specific to the particular stocks.As a result of which, the value of the portfolio has fallen more than what the market has fallen,

d) Yes, i am a bogglehead. As this strategy helps in planned and regular investing , they believe in diversification of portfolio to reduce the systematic risk , tracking the portfolio regularly and rebalancing it when required. So, yes investing this way helps creating wealth in a conservative manner.


Related Solutions

Bogleheads believe in market timing provided an advisor is carefully chosen. a) Do you agree with...
Bogleheads believe in market timing provided an advisor is carefully chosen. a) Do you agree with the above statement? b) What strategy works best for investing? c) If your portfolio's value decreases by more than the market what is one explanation? d) Are you a boglehead? Why or why not?
do you agree or disagree and why? I do believe a religious affiliation plays a major...
do you agree or disagree and why? I do believe a religious affiliation plays a major role in hospital services. Especially when there is a Christian affiliation, there should be a greater emphasis on care for the patient and more values instilled based on Biblical principles. According to Klaus (2014), in a Christian affiliated hospital, “the focus is on the individual, hence the need to provide the best possible care for individual patients” (para.3). As Matthew 5:14 states, “You are...
An investment advisor claimed that BIT return is 2%. Do you agree? Justify your reasoning using...
An investment advisor claimed that BIT return is 2%. Do you agree? Justify your reasoning using a two-tailed hypothesis test approach at the significance level of 5% in Excel. Date Weekly Return BIT 11/3/13 3.41913 18/3/13 85.71694 25/3/13 39.24392 1/4/13 -18.7891 8/4/13 9.60467 15/4/13 14.06439 22/4/13 -10.5122 29/4/13 -4.83004 6/5/13 4.244539 13/5/13 13.56176 20/5/13 -3.25568 27/5/13 -16.1155 3/6/13 4.599688 10/6/13 3.554303 17/6/13 -10.6242 24/6/13 -12.8874 1/7/13 17.84908 8/7/13 -16.0505 15/7/13 -4.66321 22/7/13 8.641301 29/7/13 25.55278 5/8/13 -17.0452 12/8/13 5.216139 19/8/13...
An investment advisor claimed that BIT return is 2%. Do you agree? Justify your reasoning using...
An investment advisor claimed that BIT return is 2%. Do you agree? Justify your reasoning using a two-tailed hypothesis test approach at the significance level of 5% in Excel. Date Weekly Return BIT 11/3/13 -46.16 18/3/13 -0.01 25/3/13 39.23 1/4/13 13.07 8/4/13 23.93 15/4/13 41.36 22/4/13 26.5 29/4/13 20.39 6/5/13 25.5 13/5/13 42.52 20/5/13 37.88001 27/5/13 15.66 3/6/13 20.98 10/6/13 25.28 17/6/13 11.97 24/6/13 -2.46 1/7/13 14.95 8/7/13 -3.5 15/7/13 -8 22/7/13 -0.05 29/7/13 25.49 5/8/13 4.099998 12/8/13 9.529999 19/8/13...
What do you agree in this? I believe the biggest issue posed for democracy by using...
What do you agree in this? I believe the biggest issue posed for democracy by using known vulnerable e-voting equipment is democracy itself. These machines could be exploited by either party in their favor, or by an outside hacktivist that supports either party in an election. If something like this were to be exploited, it essentially would throw out our constitutional right to vote, as our voice so to say could very well be tampered with and manipulated easily. I...
Do you agree that the NHS should be at least partially dissolved and a market is...
Do you agree that the NHS should be at least partially dissolved and a market is driven healthcare system be introduced in the UK? Why or why not? Provide diagrams
Do you agree that the NHS should be at least partially dissolved and a market is...
Do you agree that the NHS should be at least partially dissolved and a market is driven healthcare system be introduced in the UK? Why or why not? Provide diagrams
Do you agree or disagree with the content and give an example of efficient market hypothesis...
Do you agree or disagree with the content and give an example of efficient market hypothesis when it is weak. The efficient market hypothesis originated from a dissertation written by Eugene Fama who was studying for his PhD. It states, in short, “that at any given time and in a liquid market, security prices fully reflect all available information.” This theory has three main levels of strength: weak, semi-strong, and strong. These levels focus on the “inclusion of non-public information...
Do you agree with the statement that ‘regulation of businesses in free market economies is central...
Do you agree with the statement that ‘regulation of businesses in free market economies is central to its smooth functioning’? Justify your answer.
do you believe that ADHD is merely a behavioral disorder, or do you believe there is...
do you believe that ADHD is merely a behavioral disorder, or do you believe there is an underlying neurological component? Do you believe medication should be prescribed for children with ADHD? If you were charged with developing an intervention (treatment/behavioral) plan for a child with ADHD, what components would you include in your plan?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT