The idea of putting all eggs in different baskets is inherently based on pure math and the way the risks are lowered non-linearly, while returns being the average return on the instruments. Continue reading Diversification and why having all eggs in one basket is riskier
When it comes to investing, majority of population directly think about returns and how much one can make by allocating their funds. However, the returns come hand in hand with another measure of investment performance – risk. While the returns are fairly easily observable, measuring risk can be more tricky and have multiple layers of how we can approach them. Continue reading Measuring Risk 101
When considering investing, the return is as one of the most crucial factors the investors look at. It is not the most complex concept when we look at the value of a portfolio, however the calculations can become very intricate when we look at large, multi-asset class portfolios with transaction costs, cash flows, dividends and interest payments, and frequent rebalancing. Continue reading Measuring Returns 101
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