Economist Jeremy Siegel document that over the last two centuries the real return to stocks has been about 7 percent more than risk-free securities. From a theoretical perspective ,a premium of 7 percent is enormous, and this differential has come to be called the equity premium puzzle ,consider the following question on risk tolerance
Suppose that you are the only income earner in your family ,and you have a good job guararteed to give you your current (family) income every year for life .You have given the opportunity to take a new and equally