solved (a) Read the following book: A Randon Walk Guide To
(a) Read the following book: A Randon Walk Guide To Investing by Burton G. Malkiel, W. W. Norton & Company, 2003. This book can be purchased on Amazon.com. You canalso use the current edition of the longer book, ARandom Walk Down Wall Street by Malkiel, Norton, if you wish.Using one of the books as a guide, answer the following questions in the book report:
1. (a) Briefly discuss the risk-return tradeoff.Why is it
important to an investor?Is the holding period (how
long you expect to invest) an important factor for risk
and return?
(b) What is the equity risk premium and why is itimportant?
2.Why does Malkiel favor index funds? Explain the types of index funds he favors.
3.Explain asset allocation.Why is it so important?
4.Using Malkiel as a guide, develop a 401(k) investment
Plan for your retirement.Carefully justify your
investment decisions.
5.What are some of the tricks and pitfalls an investor