QUESTION $44$

waiting one year potentially have?

fire. The option to wait for a logging company is quite valuable, and companies in the industry have models to estimate the future growth of a forest depending on its age.

QUESTION $45$

individual project?

decision is based on experience.

making a bad decision. Of course, the additional benefits are often difficult, if not impossible, to measure, so much of this decision is based on experience.

QUESTION $46$

Given that Devon Energy was up by $193$ percent for $2021,$ why didn't all investors hold Devon Energy?

They all wish they had! Since they didn't, it must have been the case that the stellar performance was not foreseeable, at least not by most.

They all wish they had! Investors saw this coming but decided to invest in technology stocks.

They all wish they had! Investors saw this coming but decided to invest in banking stocks.

QUESTION $47$

Given that Peloton was down by $80$ percent for $2021,$ why did some investors hold the stock? Why didn't they sell before the price decline so quickly?

It's easy to see after the fact that the investment was terrible, but it probably wasn't so easy ahead of time.

The investors were planning to practice tax loss harvesting before they bought the stock. So the loss actually helped reduce the amount of taxes owed during the tax year.