Purchase Solution

Knowing that both stock investing and Las-Vegas-style gambling do have elements of risk in them, how do you compare the two?

Not what you're looking for?

Ask Custom Question

Need to answer in 2 -3 paragraphs using the following information.

You work for an investment firm and recently wrote a position article on your firm's approach to risk. The article now appears on your company's website. It has, interestingly enough, generated e-mailed responses from potential clients and your firm is asking you to address some of their questions for a Frequently Asked Questions (FAQ) segment that will be posted to the site soon. Specifically, some of the respondents have compared investing in the stock market with gambling and state that even some of the financial press have advocated for "dart throwing"- meaning it does not really matter which stocks to choose as returns on all the stocks are similar. These respondents would like a response that further clarifies your firm's position regarding risk in light of these type of statements.

Knowing that both stock investing and Las-Vegas-style gambling do have elements of risk in them, how do you compare the two? Are there any similarities between them? What about dart throwing? In your response, your company has asked that you address these questions building upon the risk-return concepts you identified in the position piece you wrote for the firm.

Purchase this Solution

Solution Summary

Here is just a sample of what you will find in the solution:

"I would say there are similarities to Vegas gambling, in that, there are certain things that many people know are true facts among a particular card game (i.e. Blackjack, Ace is 1 or 11), but many people do not know..."

Solution Preview

As you know we cannot technically write a 3 paragraph paper for you. However we can provide the information needed to successfully write your own paper. I will try to give you some background and information on the Perfect Information Theory and Random Walk.

1. Perfect Info--Also known as the efficient market hypothesis, is the theory that all given information is immediately reflected in the price of the stock. Meaning, the average individual would not be able to capitalize on the average information disseminated, because no sooner than the information is available, there will be an immediate reaction to buy the stock, driving the price up ...

Purchase this Solution

Free BrainMass Quizzes
Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.