Read the following book: A Randon Walk Guide To   Investing by Burton G. Malkiel, W. W. Norton & Company,  2003. This book can be purchased on Amazon.com. You can  also use the current edition of the longer book, A   Random Walk Down Wall Street by Malkiel, Norton, if    you wish.  Using one of the books as a guide, answer  the following questions in the book report:
  
 1. (a) Briefly discuss the risk-return tradeoff.  Why is it
 important to an investor?  Is the holding period (how
 long you expect to invest) an important factor for risk
 and return?
 
 (b) What is the equity risk premium and why is it important?
 2.  Why does Malkiel favor index funds? Explain the types of
 index funds he favors.
 3.  Explain asset allocation.  Why is it so important?
 4.  Using Malkiel as a guide, develop a 401(k) investment
 Plan for your retirement.  Carefully justify your
 investment decisions.
 5.  What are some of the tricks and pitfalls an investor
 should avoid?  Explain.
 These questions should be typed and turn-in when you take   the final on August 1. However, the questions can be   turned-in earlier. This exercise (Book Report) is worth 50   PTS. The Book Report should be about 5 pages double
 spaced.