What could have been done differently

Assignment Help Other Subject
Reference no: EM132351069

Heidi has always been a real estate investor. She tells her financial planner that, because she is such an expert, it's the only asset worth investing in. However, after a thorough assessment of Heidi's actual performance, net of costs, her rate of return over time has been about 3.5%/yr on her real estate investing. This is not a bad return, but her planner shows her that diversifying her assets into other investments will not only earn her more return over the long-term, but also reduce her risk (because real estate will not always perform well, and other assets may-when real estate does not do so well). Heidi just can't believe that something she is so comfortable with could not be as optimal as what her planner is proposing.

1) What behavior/bias is present?

2) Why is this behavior detrimental?

3) What could have been done differently, or what could be done differently next time to avoid this result?

Reference no: EM132351069

Questions Cloud

Calculate after-tax cash flow at disposal : Calculate After-Tax Cash Flow at disposal. Round the answer to two decimals.
Special purpose vehicle and a structured investment vehicle : Please help me answer this multiple choice question. One difference between a Special Purpose Vehicle (SPV) and a Structured Investment Vehicle (SIV)
There were not only economic exposures lately : There were not only economic exposures lately, but also some significant policy changes in recent months.
What is th enew market value of the company : Hickock, Inc., is proposing a rights offering. Presently there are 350,000 shares outstanding at $64 each. There will be 50,000 new shares offered at $58 each
What could have been done differently : What could have been done differently, or what could be done differently next time to avoid this result?
Australian office of financial management : Why is the AOFM (Australian Office of Financial Management) important to Australia's money market and what would happen if they did not exist?
Ratio of price to expected earnings for river cruises : What is the ratio of price to expected earnings for River Cruises before it borrows the $150,000?
What were flotation costs as a fraction of funds raised : The firm incurred $100,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?
Capital asset pricing model personal finance : Beta coefficients and the capital asset pricing model Personal Finance Problem Katherine Wilson is wondering how much risk she must undertake

Reviews

Write a Review

Other Subject Questions & Answers

  Cross-cultural opportunities and conflicts in canada

Short Paper on Cross-cultural Opportunities and Conflicts in Canada.

  Sociology theory questions

Sociology are very fundamental in nature. Role strain and role constraint speak about the duties and responsibilities of the roles of people in society or in a group. A short theory about Darwin and Moths is also answered.

  A book review on unfaithful angels

This review will help the reader understand the social work profession through different concepts giving the glimpse of why the social work profession might have drifted away from its original purpose of serving the poor.

  Disorder paper: schizophrenia

Schizophrenia does not really have just one single cause. It is a possibility that this disorder could be inherited but not all doctors are sure.

  Individual assignment: two models handout and rubric

Individual Assignment : Two Models Handout and Rubric,    This paper will allow you to understand and evaluate two vastly different organizational models and to effectively communicate their differences.

  Developing strategic intent for toyota

The following report includes the description about the organization, its strategies, industry analysis in which it operates and its position in the industry.

  Gasoline powered passenger vehicles

In this study, we examine how gasoline price volatility and income of the consumers impacts consumer's demand for gasoline.

  An aspect of poverty in canada

Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.

  Ngn customer satisfaction qos indicator for 3g services

The paper aims to highlight the global trends in countries and regions where 3G has already been introduced and propose an implementation plan to the telecom operators of developing countries.

  Prepare a power point presentation

Prepare the power point presentation for the case: Santa Fe Independent School District

  Information literacy is important in this environment

Information literacy is critically important in this contemporary environment

  Associative property of multiplication

Write a definition for associative property of multiplication.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd