Part one of term paper
Thank you for choosing Risk Averse Consulting Company to advise you in your financial investment strategy. To summarize, you have indicated that you have $10,000 per year that is available for investment and you plan on retiring in 20 years. You have indicated that you are concerned about the downside risk of an equity-based portfolio alth ...

Part two of term paper
... rate of return (ROR) has been normalized for inflation and is based on historical data starting in 1926. Normalization removes the effects of inflation so the return from one year to the next can be compared. Historical data shows that the inflation corrected ROR over a 20 year period is clearly higher for Stocks, except for a period in the mid-1970’s when stock returns dropped below T-bills. Periods of high inflation in the 70’s are the primary drivers of the stock ROR decline. T-bill ...