Quote:
Originally Posted by G35POPPEDMYCHERRY
I agree there is risk; and no one can define one's risk or how much money is enough.
what mutal fund gives 8%?
I've been making back at least 5% on div every year; mind you its only been three years since I started earning investing.
maybe that risk isn't worth it for some people. I have enough other liquid to cover the note if somehow my portfolio goes 100% bankrupt.
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1) Risk can be quantified through beta and specific financial equations, such as CaV and CAPM modeling. The risk premium is (Rm – Rrf). The CAPM formula is Ra = Rrf + βa * (Rm - Rrf).
2) Any S&P index fund should be performing better than 8%.