question archive Suppose that you recently purchased a $500,000 house and have a $400,000 mortgage
Suppose that you recently purchased a $500,000 house and have a $400,000 mortgage
Subject:FinancePrice: Bought3
Suppose that you recently purchased a $500,000 house and have a $400,000 mortgage. You also have
$100,000 invested in the S&P 500. Take your portfolio as the investment in the house, mortgage, and
stock market and consider the following statement:
If house prices go down by 10% and the stock market and interest rates don't change, your portfolio
will decrease in value by 5%.
Do you agree or disagree with this statement?
