Sunday, October 27, 2019

Is Investing Risky?

Here is the link.

It is common to think about risk in terms of total loss. You invest your money in a stock, things turn sour, and your money is gone. This can happen when you invest in a single stock, but when you properly diversify your investments it is much less likely.

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your time horizon
your psychological tolerance for volatility

compensated risk - stock price - market value - discount

Diversified stock

skewness - normal / positively skewed



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