Monty Frost’s tax-deferred retirement account is invested entirely in equity securities. Because…

Monty Frost’s tax-deferred retirement account is invested entirely in equity securities. Because the international portion of his portfolio has performed poorly in the past, he has reduced his international equity exposure to 2%. Frost’s investment adviser has recommended an increased international equity exposure. Frost responds with the following comments:

a.On the basis of past poor performance, 1 want to sell all my remaining international equity securities once their market prices rise to equal their original cost.

b.Most diversified international portfolios have had disappointing results over the past 5 years. During that time, however, the market in Country XYZ has outperformed all other markets, even our own. If I do increase my international equity exposure, 1 would prefer that the entire exposure consist of securities from Country XYZ.

c. International investments are inherently more risky. Therefore, I prefer to purchase any international equity securities in my “speculative” account, my best chance at becoming rich. I do not want them in my retirement account, which has to protect me from poverty in my old age.

Frost’s adviser is familiar with behavioral finance concepts but prefers a traditional or standard finance approach (modern portfolio theory) to investments.

* Indicate the behavioral finance concept that Frost most Erectly exhibits in each of his three comments. Explain how each of Frost’s comments can be countered by using an argument from standard finance.

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!