Consumer Decisions
What is the definition of 'opportunity cost'?
Opportunity cost is what someone gives up in order to obtain a need or want.
What is the time frame for a medium term investment ?
4-6 yrs
What are factors that influecne consumer decisions? List five
- age
- conveneicne preferences
- culture
- customer service preferences
- disposable income
- gender
How much of your wage is paid for superannuation?
11%
What are the benefits and limitations of a cryptocurrency?
GOOD:
- not trackable and has inflation protection
BAD
- no refund and has no government tracking
How to calculate gross rental yeild?
Rental income divides by property value multiplied by 100. The solution is in percentages
What are the components of the barefoot investor?
- Blow Bucket - for daily expenses
- Mojo Bucket - to provide safety money
- Grow Bucket - to build long term wealth
How to caulcuate net rental yield
rental income - property costs/ property value = rental yield
What are the percentages that are part of each bucket in the Barefoot Investor?
Grow bucket - 20%%
Blow bucket - 60%
Mojo Bucket - 20%
What are the benefits and limitation of managed funds?
GOOD
- professional fund manager manages it for people BAD
- increases cost of buying and selling them