P/E Ratio Effect
(1) Why do you think some of the stocks had so high P/E ratios?
(2) Given the fact that firms with high P/E ratio firms have more growth opportunities than low P/E ratio firms, if other things remain the same, would you buy high P/E ratio firms or low P/E ratio firms, or are you indifferent?
A person invests 2,000 a year in a retirement account, how much will they have?
a. In 5 years at 6% $2,697.70
b. In 20 years at 10% $14,656.14
c. In 40 years at 12% $237,295.45
What patterns did you observe as time or interest rates change and why?