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Catallarchy: Lower risk = greater return

  • Aug. 16th, 2004 at 6:35 PM
side-beard-flip
A brief post about how diversified portfolios can have a return greater than any of their individual assets.

Comments

[info]olstad wrote:
Aug. 17th, 2004 01:37 pm (UTC)
neat;

I like learning counterintuitive things, especially when they shift my intuition.
[info]patrissimo wrote:
Aug. 17th, 2004 05:43 pm (UTC)
more
check out the link in the comment section there, if you haven't already, to learn more counter-intuitive stuff. Specifically, discussion of whether longer time periods increase or decrease the risk of an investment. I assume that multiple trials of a random variable decrease risk, but there are reasonable ways of looking at it for which that is not true.

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