Investment - book report

Book name - Thetextis Essentials of Investments by Bodie, Kane,andMarcus (BKM), 10th edition,McGraw-HillIrwin, 2016.
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 it important?
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
   Planfor your retirement. Carefully justify your
   investmentdecisions.
5. What are some of the tricks and pitfalls an investor
   shouldavoid? Explain.

Sample Solution