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Re: Dr Bill post# 8373

Friday, 12/22/2006 12:03:50 AM

Friday, December 22, 2006 12:03:50 AM

Post# of 14027
Dr Bill, the reason why the return seems infinite is because your example uses infinitely extreme numbers where you start at $100 and cover at 0.01. In the real world covering at 1/2 the value, which is about $50, would be exceptional.

Also, I don't believe you took a world survey to determine if they agree with me or not. However, I would agree that 80% of people with business degrees, and 99% of the people in general would agree with you. Not because you're right but because they don't understand the concept either.

I suggest you go talk to one of your finance professors at St. Bonnie.