Volatility Primer 6: The Accumulation Of Risk and Return
Using the monthly return and standard deviation, of the S&P 500, 0.94% and 4.38% respectively, since monthly return is not random, the...
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Volatility Primer 5: Probabilities For Normally Distributed Assets
For an investment portfolio, we care about the probability the portfolio is above or below a desired value. For the S&P 500, which is...
Volatility Primer 4: Asset Values With Higher And Lower Volatility
Assets with a lower standard deviation, or volatility, have less variation in their return than assets with higher volatility. Below is...
Volatility Primer 3: The Normal Distribution
The random variation of monthly or annual asset returns conform to a probability distribution known as the normal (Gaussian) distribution...
Volatility Primer 2: The Relationship Between Return And Volatility (Or Risk)
In general, there is a correlation between increasing risk and increasing return. In order to get a higher annualized return, you will...
Volatility Primer 1: Volatility Background
Volatility is a statistical measure of the variability of returns in a given asset or index. Volatility of returns is extremely...
Bonds Are Likely Too Heavily Weighted In Most Passive Portfolios
Passive portfolios rely on historical performance for their relative weighting of assets. To the extent that future returns match...
Historical Bond Performance Points To Lower Future Returns
The 35 year bull market in bonds from 9/81 through 7/16 saw yields on the 10-year US treasury fall from 15.32% to 1.50%. The average...
Is A College Degree A Good Investment?
Men and women with Bachelor's degrees earn more than those with just a high school diploma. People with Advanced degrees earn more than...
Education Level Correlates With Income and Employment
Most people work for companies looking to make a profit. These companies attempt to hire people that will help them achieve their goals....
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