90-Second Money Management
Test
04/15/2006
Think you would be a good
money manager? Take the following simple 90-second test which
has a high correlation with people's ability to assess risk
and the time value of money. The test was developed by Shane
Frederick, an assistant professor at Massachusetts Institute
of Technology.
(1) A bat and a ball cost
$1.10 in total. The bat costs $1 more than the ball. How much
does the ball cost?
(2) If it takes five machine five minutes
to make five widgets, how long would it take 100 machines
to make 100 widgets?
(3) In a lake, there is a patch of
lily pads. Every day, the patch doubles in size. If it takes
48 days for the patch to cover the entire lake, how long would
it take for the patch to cover half of the lake?
Answers
***
Weekly Market Wrap
This was a quiet and short holiday week
for the markets with the S&P 500 retreating (-0.5%). Year-to-date,
the S&P 500 is up 3.3%. Next week will not be so quiet.
The earnings season for us kicks off with a bang next week
with companies such as Altria and Moneygram reporting quarterly
results.
***
Our Leading
Gainers Since Date of Recommendation:
| Chaparral Steel Company (CHAP) |
+188.8% |
| Eagle Materials Inc (EXP) |
+169.0% |
| Altria (MO) |
+159.1% |
| Gamestop Corp. (GME) |
+130.5% |
| LSI Industries (LYTS) |
+119.5% |
| Vanguard Energy (VGENX) |
+107.6% |
| Vanguard-Global Equity (VHGEX) |
+101.7% |
| Oakmark Global (OAKGX) |
+91.9% |
| MoneyGram Int'l (MGI) |
+80.5% |
| MEMC Electronic Materials (WFR) |
+76.3% |
| Ruddick (RDK) |
+76.0% |
| Jack Henry & Assoc. (JKHY) |
+72.3% |
| RPM International (RPM) |
+71.0% |
| Eaton Vance Corp. (EV) |
+67.6% |
| InterContinental Hotels Group (IHG) |
+65.7% |
| Claire's Stores, Inc. (CLE) |
+64.0% |
| Freescale Semiconductor Inc. (FSL) |
+61.9% |
| Kaydon Corp. (KDN) |
+59.6% |
| Genesis Healthcare (GHCI) |
+59.0% |
Subscribers can find the full weekly update,
including our leading gainers-to-date, here.
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