Asked by Fatma Khalid on Jun 25, 2024
Verified
What are the lessons learned from capital market history? What evidence is there to suggest these lessons are correct?
Capital Market History
The historical evolution and record of financial markets that deal with the buying and selling of long-term debt or equity-backed securities.
Lessons Learned
Lessons learned refers to knowledge gained from the process of conducting a project or experience, which can be used to improve future actions or understand past outcomes.
- Evaluate the significance of past financial market data and inflation in the context of financial planning.
Verified Answer
KH
Kaija HedmanJun 29, 2024
Final Answer :
First, there is a reward for bearing risk, and second, the greater the reward, the greater the risk. As evidence, the students should provide a brief discussion of the historical rates of return and standard deviation of returns of the various asset classes discussed in the text.
Learning Objectives
- Evaluate the significance of past financial market data and inflation in the context of financial planning.