In layman terms what does risk mean? Does it mean the degree of volatility and how long does it take to recover?
How is this determined? Since we can not tell the future, I am guessing it is based on past data on volatility & recovery.
Sort of likelihood of an air crash. But is unlike likelihood of hitting the lottery.
Former is an extrapolation. Latter an exact calculation.
Help me understand if there is some real, factual, measurable way to understand risk vs return.
Measurable and understandable in the same way as walking around the block to buy a burrito vs driving a mile to fetch one.
Well even in the burrito example there could be opinions, but it seems generally measurable and understandable.
What is a reasonable way to evaluate if some risk is worth the return or not. Or is this largely a matter of personal opinion and personal situation?
BTW here is an example post I find helpful: viewtopic.php?p=6843970#p6843970 - are there answers in a similar vein or otherwise that helps one understand risk-return well?
How is this determined? Since we can not tell the future, I am guessing it is based on past data on volatility & recovery.
Sort of likelihood of an air crash. But is unlike likelihood of hitting the lottery.
Former is an extrapolation. Latter an exact calculation.
Help me understand if there is some real, factual, measurable way to understand risk vs return.
Measurable and understandable in the same way as walking around the block to buy a burrito vs driving a mile to fetch one.
Well even in the burrito example there could be opinions, but it seems generally measurable and understandable.
What is a reasonable way to evaluate if some risk is worth the return or not. Or is this largely a matter of personal opinion and personal situation?
BTW here is an example post I find helpful: viewtopic.php?p=6843970#p6843970 - are there answers in a similar vein or otherwise that helps one understand risk-return well?
Statistics: Posted by Robin1234 — Wed Jul 31, 2024 8:44 pm — Replies 7 — Views 559