Question 12.3: Investing in Growth Stocks The term growth stock is frequent...
Investing in Growth Stocks
The term growth stock is frequently used as a euphemism for small-company stock. Are such investments suitable for “widows and orphans”? Before answering, you should consider the historical volatility. For example, from the historical record, what is the approximate probability that you will actually lose more than 16 percent of your money in a single year if you buy a portfolio of stocks of such companies?
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