The Importance Of CorrelationCorrelation, or lack of correlation, is an important factor in portfolio construction. A portfolio constructed of two assets that have...
The Accumulation Of Risk and ReturnFrom 12/31/71 through 1/31/17 the monthly return and standard deviation, of the S&P 500 was 0.94% and 4.38%. Monthly return is not...
Define Your RiskInvestment portfolios have risk. Downturns occur periodically. Companies grow and mature. Some companies whither and die. Statistics...
Are Monthly Asset Returns Normally Distributed?A normal distribution, or bell curve, fairly accurately models the monthly returns for the S&P 500 (see blog post: Are S&P 500 Returns...