THE PSYCHOLOGY OF INVESTING, 2ND EDITION, JOHN R. NOFSINGER (PRENTI...

3. The Psychology of Investing, 2

nd

edition, John R. Nofsinger (Prentice Hall, 2005) D. “Considering the Past,” Ch. 4 Purpose: • To test the candidate’s understanding of the investment policy statement, assess and differentiate between ability and willingness to assume risk, as well as calculate required nominal rates of return. • To test the candidate’s ability to recognize investor’s reasoning errors and discuss how they impact their ability to create wealth. LOS: The candidate should be able to: